IndusInd bank Q1 result : net profit falls 68%

Private sector lender IndusInd Bank on Tuesday said that it will raise Rs3,288 crore through a preferential issue of shares to its promoter Hinduja group and other institutional investors.

Promoter entities, including Hinduja Capital and IndusInd International, will infuse Rs.792 crore. Investors participating in the issue include Route One Fund and Route One Offshore, which will together contribute Rs.935 crore. The RBI had earlier approved an investment of up to 10% by Route One in IndusInd Bank. Other investors include ICICI Prudential Life Insurance, Tata Investment Corp Ltd and AIA Co Ltd. The preferential issue shares will be allotted at a price of Rs524 apiece.

Also announcing its Q1 results on Tuesday, the lender reported a 67.86% decline for June quarter profit, dented by higher provisions. The profit during the quarter declined to Rs.460.40 crore compared to Rs.1432.50 crore reported in the same quarter last year. Profit was lower than Rs.724.90 crore estimated by a Bloomberg poll of 16 analysts.

Net interest income, the difference between interest earned and interest expended, grew by 16.36% YoY to Rs.3309.19 crore in Q1 over Rs.2843.99 crore for the corresponding quarter last year.

Provisions during the quarter increased more than four-folds to Rs.2258.88 crore as against ₹430.62 crore a year ago.

Asset quality was almost stable with gross non-performing assets (NPAs) as a percentage of total loan rose to 2.53% as compared to 2.15% a year ago and 2.45% in the previous quarter ending March 2020. Net NPAs fell to 0.86% from 1.23% in the same quarter last year and 0.91% in the previous quarter.

“We have done a stress test end of June. After reviewing the businesses, our slippages will be 92 bps higher than what is normal as a consequence of covid and our incremental provision cost will be 65 bps against 53 bps which we had said in covid 1.0. The overall affected number is ₹1336 crore of which we had made ₹1206 crore of provision," said Sumanth Kathpalia, managing director and chief executive officer, Indusind bank

Non-interest income fell 8.66% to Rs.1519.19 crore as compared to Rs.1663.25 crore in Q1FY20.

Loan growth fell 4.2% to Rs.1.98 lakh crore at the end of June quarter compared to Rs.2.06 lakh crore at the end of previous quarter. Loan book under moratorium reduced to 16% as of June 2020 from 50% as of April 2020.

While the management avoided giving any targets on credit growth for the full year, they said that the bank will continue to be conservative and yet they see some pick up in loan growth in micro, small and medium enterprises (MSME) sector in the coming months.

“We are seeing green shoots in vehicle finance and we are going slow on unsecured portfolio," said

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Indusind bank Q4 profit falls 77%

Private sector lender IndusInd Bank on April 27 reported a March quarter profit at Rs 301.84 crore, which was much lower than the average of estimates of analysts polled by CNBC-TV18 pegged at Rs 537.3 crore.

The profit declined 76.8 percent compared to the previous quarter's net at Rs 1,300.2 crore, impacted by higher provisions and lower other income, but lower tax (down 77 percent QoQ) limited the decline.

Numbers are non-comparable year-on-year as Bharat Financial Inclusion was merged in July last year.

Net interest income for the quarter grew by 5.1 percent sequentially to Rs 3,231.2 crore, which was better than the CNBC-TV18 poll estimates of Rs 2,917 crore.

Net interest margin for Q4FY20 improved to 4.25 percent, from 4.15 percent in the previous quarter and 3.59 percent in the corresponding period last year.

Provisions and contingencies shot up 133.9 percent quarter-on-quarter to Rs 2,440.32 crore on account of COVID-19-led uncertainty but provision coverage ratio improved to 63.34 percent from 52.53 percent QoQ, IndusInd Bank said in its BSE filing.

"There is a high level of uncertainty about the duration of the lockdown due to COVID-19 pandemic and the time required for things to get normal. In this backdrop, during the quarter and year ended March 31, 2020, the bank has made a counter cyclical buffer/ floating provision of Rs 260 crore," it said.

In line with the RBI suggestion, the bank offered a moratorium on loan repayments and interest payable to eligible borrowers.

"In respect of such borrowers to whom the benefit of asset classification was extended consequent to the moratorium, the bank made a general provision of Rs 23 crore during the quarter and year ended March 31, 2020," IndusInd said.

On the asset quality front, gross non-performing assets (NAPs) as a percentage of gross advances rose 27 bps QoQ to 2.45 percent in January-March quarter, but net NPAs declined 14 bps sequentially to 0.91 percent in Q4FY20.

Other income (non-interest income) during the quarter dropped 1 percent sequentially to Rs 1,772 crore, but pre-provision operating profit registered a 3.3 percent QoQ growth at Rs 2,836.17 crore in Q4FY20.

For the financial year ended March 2020, IndusInd Bank reported a 33.8 percent growth in profit compared to the previous year but the growth was constrained by higher provisions (up 50 percent), while net interest income grew by 36.3 percent to Rs 12,058.74 crore during the year.

Earlier this month, Moody's Investors Service placed domestic and foreign currency issuer ratings of Baa3/P-3 under review for downgrade.

The bank's ba1 baseline credit assessment (BCA) and adjusted BCA have also been placed under review for downgrade by the global rating agency.

The stock price crashed 80.3 percent during the financial year 2019-20 and 77 percent during the January-March quarter due to the COVID-19-led correction, deposits outflow and exposure to telecom sector.

The year-to-date fall was 73.5 percent

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IndusInd Bank Q3 result, asset quality worsens

Private lender IndusInd Bank on Tuesday posted 32 per cent year-on-year rise in profit at Rs 1,300 crore for the quarter ended December 31, thanks to a healthy growth in retail and treasury revenue.

However, spike in provisions and worsening asset quality remains main concerns.

Romesh Sobti, Managing Director & CEO of Induslnd Bank said: "During Q3FY20, the bank witnessed a healthy growth in its topline as well as in operating profit. We reached a milestone as the balance sheet footage crossed Rs 3 lakh crore and advances crossed the Rs 2 lakh crore mark. PCR increased to 53 per cent to strengthen the balance sheet. We look forward to moving into the subsequent quarters with renewed momentum."

Here are the key takeaways from the bank’s Q3 earnings:

Provisions spike

Provisions for bad loans jumped as IndusInd Bank kept aside Rs 1,043.45 crore in the December quarter this fiscal compared with Rs 606.68 in the same quarter a year ago. This translates into a jump of 72 per cent.

Employee costs jump

Employee costs jumped 22 per cent to Rs 550 crore from Rs 452 crore. This can be explained by a significant number of branch additions by the lender. The bank operates via 1,851 branches now against 1,558 branches as on December 31, 2018.

Asset quality drops

Asset quality of the bank worsened year-on-year as gross non-performing assets (NPA) more than doubled to Rs 4,578 crore from Rs 1,968.15. In percentage terms it went up to 2.18 per cent from 1.13 per cent a year ago. Net NPA edged higher to 1.05 per cent to 0.59 per cent.

Retail revenue grows 32 per cent

Revenue from retail business rose 31.6 per cent year-on-year to Rs 5,026 crore from Rs 3,819 crore. Treasury operations also saw a strong growth of 25 per cent to Rs 1,460 crore while revenue from corporate banking lagged, growing at just 9.3 per cent to Rs 2,589 crore.

NII rises 34 per cent

Net Interest Income (Nll) for the quarter was at Rs 3,074 crore against Rs 2,288 crore in the corresponding quarter last year, registering a growth of 34 per cent. Non-interest income for the quarter was at Rs 1,790 crore compared with Rs1,469 crore, a growth of 22 per cent.

Loans portfolio grows 20 per cent

Total advances as of December 31, was Rs 2,07,414 crore compared with Rs 1,73,169 crore on December 31, 2018, recording a growth of 20 per cent.

Total deposits as on December 31, was at Rs 2,16,713 crore against Rs 1,75,701 crore, up by 23 per cent. Total business of the bank stood at Rs 4,24,127 crore.

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Indusind bank Q2 profit falls 3.4% QoQ

Private sector lender IndusInd Bank reported a 3.4 percent sequential decline in September quarter profit, dented by higher provisions and slow net interest income growth.

The profit during the quarter declined to Rs 1,383.37 crore compared to Rs 1,432.5 crore reported in June quarter while the year-on-year (YoY) rise was 69 percent.

Net interest income, the difference between interest earned and interest expended, grew by 2.3 percent quarter-on-quarter (QoQ) (32 percent sequentially) to Rs 2,909.5 crore in Q2 with 5bps improvement in net interest margin at 4.10 percent QoQ.

The stock slipped 5 percent to Rs 1,245 at the time of publishing this copy due to higher slippages and weak management commentary.

The loan growth for the September quarter stood at 20.8 percent YoY and 1.9 percent QoQ.

"The loan growth is at multi-year low. We expect slowdown to play out over next couple of quarters," CEO Romesh Sobti said while addressing a press conference.

Numbers were largely stable as the profit was expected at Rs 1,379.8 crore and the net interest income at Rs 2,987.3 crore for the quarter, according to a poll of analysts conducted by CNBC-TV18,

On the asset quality front, the gross non-performing assets (NPA) increased to 2.19 percent in Q2 against 2.15 percent in previous quarter, but the net NPA declined to 1.12 percent against 1.23 percent on sequential basis.

IndusInd Bank reported slippages at Rs 1,102 crore in the quarter ended in September, which was quite higher compared to Rs 725 crore in the June quarter due to 174 percent increase in corporate slippages (at Rs 479 crore) and 13 percent in consumer slippages (at Rs 623 crore).

Provisions during the quarter remained elevated at Rs 737.7 crore, rising 71.3 percent compared to Q1FY20 and the YoY increase was 25 percent.

The provision coverage ratio improved to 50 percent in the September quarter against 43 percent reported in the June period.

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IndusInd Bank net profit jumps 38% in Q1 result

Private sector lender IndusInd Bank on Friday reported 38.3% jump in its net profit at ₹1,432.50 crore for the June quarter of this fiscal. The bank had posted a net profit of ₹1,035.72 crore in the corresponding period of the preceding fiscal ended March 2019.

The lender's net interest income rose to ₹2,844 crore, as compared to ₹2,122 crore in the year-earlier quarter.

Total income grew to ₹8,624 crore during the June quarter of 2019-20 under review, as against ₹6,369 crore in the same period of 2018-19, IndusInd Bank said in a regulatory filing.

On the asset front, the lender witnessed an uptick with the gross non-performing assets (NPAs) rising to 2.15% of the gross advances at the end of June 2019, as against 1.15% by end of June 2018.

Likewise, the net NPAs or bad loans too jumped to 1.23%, from 0.51% in the year ago period.

A rise in NPAs ratio led to a higher provisioning and contingencies at ₹430.62 crore for April-June, 2019-20, as compared to ₹350 crore set aside during the same period of the fiscal ended March 2019.

"While net interest income was in line with expectations, net profit numbers were much higher led by lower than expected provisions," said Mona Khetan, banking analyst at Reliance Securities.

The bank said the results for the first quarter of this fiscal includes the operating performance of Bharat Financial Inclusion Ltd (BFIL), which has been merged with the lender now.

"We have successfully completed the merger with BFIL. During this quarter, the Bank has witnessed healthy growth in its topline as well as in operating profits and will now push forward into the subsequent quarters basis our strong belief in new opportunities, especially in rural India," Romesh Sobti, MD & CEO, IndusInd Bank said in a statement.

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IndusInd Bank Q4 profit down 62%, asset quality deteriorates

Private sector lender IndusInd Bank today reported a fall in net profit in the fourth quarter, hurt by higher provisions for bad loans. Net profit fell to Rs.360 crore for the quarter ended March 31, 2019, as compared to Rs.953 crore in the year earlier period. Provisions for bad loans increased to Rs.1,560 crore in the March quarter, as against Rs.606 crore in December quarter and Rs.335 crore in the March quarter of the previous year.

During the quarter, IndusInd Bank classified Rs.3,004 crore infra assets of IL&FS group as NPA during the quarter. Its provision for exposure to IL&FS holding company increased to 70% and to IL&FS operating companies/Special Purpose Vehicle (SPVs) increased to 25%.

Asset quality deteriorated, with both gross as well as net NPA as a percentage of total loans increasing in the March quarter. Gross NPAs a percentage of total loans increased to 2.1% in March quarter, against 1.13% in the December quarter. Similarly, net NPA also increased to 1.21%, from 0.59%.

However, the bank reported a 10% increase in net interest income to Rs.2,240 crore in the March quarter. IndusInd Bank has recommended a dividend of Rs. 7.50 per share.

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IndusInd Bank reports marginal rise in Q3 profit

Indusind Bank on Wednesday reported a marginal rise in its December-quarter net profit due to higher provisions and contingencies. Net profit for the quarter rose 4.6% to Rs 985.03 crore from Rs 936.25 crore a year ago. According to Bloomberg estimates, the lender was expected to post a profit of Rs 810.50 crore.

Bloomberg reported that Indusind’s IL&FS total provision was at Rs 600 crore, and that the bank has Rs 2000 crore exposure to IL&FS Holding company.

Provisions and contingencies surged 156.89% to Rs606.68 crore in the quarter from Rs236.16 crore a year ago. On a quarter-on-quarter basis, it rose marginally 2.78% from Rs590.27 crore.

Net interest income (NII), or the core income a bank earns by giving loans, was up 20.76% to Rs2288.09 crore versus Rs1894.81 crore last year. Other income was at Rs1468.85 crore, up 23.77% from Rs1186.76 crore a year ago.

Gross non-performing assets (NPAs) rose 31.32% to Rs1968.15 crore at the end of the December quarter from Rs1498.70 crore in the same quarter last year.

As a percentage of total loans, gross NPAs was at 1.13% as compared with 1.16% in the year-ago quarter. Net NPAs were at 0.59% against 0.46% a year ago.

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Indusind bank Q2 profit rise 4.6%, NPA rise

Indusind Bank on Monday reported a 4.6% rise in its September-quarter net profit due to higher provisions and contingencies. Net profit for the quarter stood at Rs 920.25 crore against Rs 880.10 crore a year ago. On quarter on quarter basis, net profit declined 11.15% from Rs 1035.72 crore. According to Bloomberg, the lender expected to post a profit of Rs 920 crore.

Net interest income (NII), or the core income a bank earns by giving loans, was up 21% to Rs2203.28 crore versus Rs1820.99 crore last year. Other income was at Rs1317.28 crore, up 11% from Rs1187.57 crore a year ago.

Provisions and contingencies surged 100.94% to Rs590.27 crore in the quarter from Rs293.75 crore a year ago. On a quarter-on-quarter basis, it jumped 68.64% from Rs350.01 crore.

Gross non-performing assets (NPAs) rose 32.42% to Rs1781.36 crore at the end of the September quarter from Rs1345.28 crore in the same quarter last year.

As a percentage of total loans, gross NPAs stood at 1.09% as compared with 1.08% in the year-ago quarter. Net NPAs were at 0.48% against 0.44% a year ago.

Advances for the quarter grew 32.44% to Rs 1.63 trillion while deposits rose 19% to Rs 1.68 trillion.

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