About the company:
IndusInd Bank is a leading private sector bank in India, headquartered in Mumbai. Established in 1994, it offers a wide range of banking services, including retail and corporate banking, wealth management, and digital banking solutions. The bank has a strong focus on technology-driven financial services and serves both individual and business customers. It has a robust presence across India with a growing branch network and international offices. IndusInd Bank is known for its customer-centric approach, innovation, and consistent financial performance.
Key Business Segments
Vehicle Finance
Disbursements: ₹13,388 crore (up 25% QoQ)
Growth in MHCV, Construction Equipment, and 2-Wheelers
Slippages Stable: 0.74% (vs. 0.73% YoY, 0.77% QoQ)
Restructured Book Reduced: ₹231 crore (vs. ₹309 crore QoQ)
Microfinance (BFIL)
Loan Book: ₹38,883 crore (1% QoQ, -4% YoY)
Slippages Increased: ₹695 crore
30-90 DPD Book: Stable at 4.0%
Disbursements Slower: ₹9,200 crore, cautious approach due to market conditions
Merchant Business Growth: Loan book at ₹6,319 crore (up 32% YoY)
Corporate Banking
Loan Growth: 16% YoY, 2% QoQ
Key Sectors: Petrochemicals, Food Processing, NBFCs
High-Quality Portfolio: 79% of loans rated A & above
Slippages: ₹281 crore, mainly from a restructured real estate account
Other Retail Assets
Growth: 19% YoY, 4% QoQ
MSME Book: ₹17,769 crore (up 12% YoY)
Home Loans: 128% YoY growth (now at ₹3,144 crore)
Credit Card Spends: ₹28,135 crore (up 12% QoQ)
Digital & Technology Initiatives
New Digital Banking Platform “INDIE” launched for all customers
Merchant Banking Expansion: “INDIE for Business” launched for MSMEs
70,000+ digital account openings per month
₹2,000+ crore of fixed deposits opened digitally every month
Management Commentary & Outlook
Cautious on Microfinance: Slippages expected to remain high for another quarter
Retail Loan Growth to Resume: Retail share to inch up gradually
NIM Outlook: To stabilize post Q4, awaiting interest rate trends
Strong Capital & Liquidity: Well-positioned for growth, LCR at 118%
Here’s a comparison of IndusInd Bank’s financial performance over the last three quarters (Q3, Q2, and Q1 of FY25):
| Financial Metric | Q3 FY25 (Dec 2024) | Q2 FY25 (Sep 2024) | Q1 FY25 (Jun 2024) |
|---|---|---|---|
| Net Interest Income (NII) | ₹5,228 crore | ₹5,214 crore | ₹5,077 crore |
| Net Interest Margin (NIM) | 3.93% | 4.08% | 4.21% |
| Operating Profit | ₹3,601 crore | ₹3,603 crore | ₹3,613 crore |
| Net Profit (PAT) | ₹1,402 crore | ₹1,333 crore | ₹2,124 crore |
| Return on Assets (RoA) | 1.03% | 1.00% | 1.66% |
| Return on Equity (RoE) | 8.45% | 8.07% | 13.12% |
| Loan Growth (YoY) | 12% | 13% | 21% |
| Deposit Growth (YoY) | 11% | 12% | 15% |
| Gross NPA | 2.25% | 2.19% | 1.94% |
| Net NPA | 0.68% | 0.66% | 0.58% |
| Provision Coverage Ratio | 70% | 71% | 72% |
| Capital Adequacy (CET1) | 15.18% | 15.02% | 14.90% |
Recent updates:
Highlights from last con call:
Key Financial Highlights
Net Interest Income (NII): ₹5,228 crore
Net Interest Margin (NIM): 3.93% (declined from 4.08% QoQ)
Operating Profit: ₹3,601 crore (flat QoQ)
Net Profit: ₹1,402 crore (up 5% QoQ)
Return on Assets (RoA): 1.03% (vs. 1.00% QoQ)
Capital Adequacy: CET1 at 15.18%, Total CRAR at 16.46%
Loan & Deposit Growth
Loan Growth: 12% YoY, 3% QoQ
Retail Loans: 19% YoY growth
Corporate Loans: 16% YoY growth
Vehicle Finance: 9% YoY, 3% QoQ growth
Microfinance (BFIL): Flat QoQ, down 4% YoY
Deposit Growth:
Retail Deposits: 14% YoY, 4% QoQ
Overall Deposits: Declined 1% QoQ due to reduction in bulk deposits
CASA Ratio: Lower QoQ due to outflow of short-term deposits
Asset Quality & Provisions
Gross NPA: 2.25%
Net NPA: 0.68%
Gross Slippages: ₹2,200 crore
Microfinance (BFIL): ₹695 crore
Vehicle Finance: ₹671 crore
Corporate: ₹281 crore
Other Retail: ₹553 crore
Provision Coverage Ratio (PCR): 70%
Contingency Provisions: ₹1,325 crore (used ₹200 crore for MFI & corporate slippages)