IndusInd Bank Q4 profit rises 15% to ₹2,349 crore
STRONG GROWTH. Buoyed by healthy net interest income and stable margins DATA FOCUS.
IndusInd Bank posted a consolidated net profit of ₹2,349 crore for Q4 FY24, up 15 per cent on year and 2 per cent on quarter, led by healthy growth in net interest income (NII) and stable margins.
The consolidated results include the financials of whollyowned subsidiary Bharat Financial Inclusion Ltd and associate company IndusInd Marketing and Financial Services.
“In FY24, the bank achieved two important milestones of completing 30 years of operations and balance sheet crossing ₹5-lakh crore,” MD and CEO Sumant Kathpalia said. The board of the bank recommended a dividend of ₹16.50 per share for FY24.
ADVANCES UP
Advances of the bank grew 18 per cent on year and 5 per cent on quarter to ₹3.4-lakh crore. Disbursements in the vehicle finance business were 4 per cent lower year-on-year and 13 per cent quarter-onquarter due to the migration
Sumant Kathpalia, MD& CEO
of the business to a new core banking system.
However, on an overall basis, the bank is seeing no rationale for loan growth to slow down, including in corporate loans. The bank will continue to maintain retail loans at 5558 per cent of the portfolio and corporate loans at 42-45 per cent, Kathpalia said in the earnings call.
NII for the quarter grew 15 per cent y-o-y and 2 per cent q-o-q to ₹5,376 crore. Net interest margin (NIM) stood at 4.26 per cent as against 4.29 per cent in the previous quarter and 4.28 per cent in the previous year.
The bank’s margins will remain within the guided range of 4.2-4.3 per cent, Kathpalia said. Yield on assets for the bank rose to 9.85 per cent in Q4 from 9.20 per cent a year ago. In comparison, cost of funds increased to 5.59 per cent from 4.92 per cent.
However, a 24 per cent increase in operating expenses to ₹3,803 crore weighed on the bottom-line. Kathpalia said that the bank is on a “growth path” and is continuously investing in various verticals such as people, technology infrastructure, data centers, distribution and relatively newer businesses such as the mortgage and merchant acquiring segments.
“As long as our financial vectors are between 1.8-2.2 RoA (return on assets) and growth is between 18-22 per cent and we are able to deliver that, there should not be a problem in the opex,” he said adding that the bank will continue to invest for future growth.
DEPOSIT GROWTH
Deposits grew by 14 per cent on year to ₹3.8 lakh-crore led by 18 per cent growth in retail deposits. CASA deposits stood at ₹1.5 lakh-crore, of which current account deposits were ₹46,989 crore and savings account deposits were ₹98,676 crore. CASA deposits comprised 38 per cent of total deposits.
With widening spreads between CASA and term deposits, more customers are moving towards term deposits, Kathpalia said, adding that savings account growth has been strong but current account growth has been weak. As such, the bank is focussing on medium and small corporates to replace the CASA over time and the ratio should move up to 38.5-39 per cent in FY25 and beyond thereafter.
On sustained delinquencies in the vehicle portfolio, Kathpalia said the scooter loan business was impacted during the Covid pandemic and has just started picking up which should support asset quality going forward. Credit cost should remain at 110-130 bps for FY25, he added.
Gross NPA ratio improved to 1.92 per cent as of March 31 from 1.98 per cent in the previous year but was flat on quarter. Net NPA ratio at 0.57 per cent was also better than 0.59 per cent a year ago but unchanged sequentially.
Here’s a closer look at their profiles.
The richest among them is Congress’ Mandya candidate Venkataramane Gowda. Popularly known as Star Chandru, he seems to be a political greenhorn. Gowda and his family own assets worth ₹623 crore, and going by his adavit, his most expensive assets are the shares of a lesser-known infrastructure company, Star Infratech, that his wife owns.
Gowda joined the company as a managing partner in 2011. In 2021, the company bagged the contract to develop and rejuvenate the Koramangala (K-100) valley, according to news reports. Star Chandru is the brother of K.H. Puttaswamy Gowda, independent MLA of Gauribidanur.
The next on the list is former Congress MP DK Suresh, the brother of Karnataka Deputy Chief Minister DK Shivakumar. Suresh has assets worth ₹593.05 crore with his most expensive possession being Global Mall, Gopalapura. According to the Lulu group’s website, this is where the Lulu Mall Bengaluru operates. Suresh’s 2019 adavit shows that in five years, his wealth has grown by 75 per cent. It is noteworthy that his brother DK Shivakumar is the richest MLA in India.
After Suresh comes actorturned-BJP MP Hema Malini, who is contesting again from her incumbent seat in Mathura. Malini has around ₹279 crore worth of assets. Of this, the bungalow in Juhu, her husband Dharmendra, is her most expensive possession. She saw her wealth grow by ₹28 crore in the last five years.
A candidate’s asset is the sum of everything they, their spouse and dependents (also
Hindu Undivided Family in some cases) own.
She is followed by Congress’ Madhya Pradesh candidate Sanjay Sharma, with assets worth ₹232.72 crore. He contested the 2018 Madhya Pradesh elections and according to the declaration, his wealth grew by more than ₹100 crore in six years.
FIFTH RICHEST
The fifth richest candidate is former Karnataka Chief Minister and JD(S) leader HD Kumaraswamy. Kumaraswamy is also a candidate from Mandya, where he will face
Venkataramane Gowda.
While he now has assets worth ₹217.23 crore, this is a 15 per cent growth compared to how much he owned during the 2023 Karnataka elections.
The others in the richest ten list include BJP MP Kanwar Singh Tanwar and MS Ramaiah’s grandson Raksha Ramaiah, a Congress candidate from Karnataka’s Chikkballapur. Another prominent face is former Congress spokesperson and academician MV Rajeev Gowda, contesting from Bengaluru North.