IndusInd Bank Reports Q3 Business Performance, Net Advances and Deposits Increase

IndusInd Bank has revealed its business performance metrics for the quarter ending September 30, 2023. The bank’s net advances reached ₹3,14,928 crore, reflecting a 5% increase from the prior quarter and a notable 21% growth compared to ₹2,60,129 crore from the same date last year. The bank’s market capitalization is approximately 141.05 million USD, with a price-to-earnings (P/E) ratio of 9.47.

Total deposits also saw an increase, totaling ₹3,59,819 crore as of September 30, 2023. This indicates a 4% rise from ₹3,47,347 crore reported on June 30, 2023, and a significant 14% year-on-year growth from ₹3,15,921 crore as of September 30, 2022. This performance highlights IndusInd Bank as a key player in the banking sector, providing robust returns on book equity for its shareholders.

However, despite the positive trends in deposits, the CASA (Current Account Savings Account) ratio decreased during this period, standing at 39.4% as of September 30, 2023, down from 39.9% on June 30, 2023, and 42.4% a year earlier.

In specific deposit categories, retail deposits and funds from small business customers rose to ₹1,57,178 crore by September 30, 2023, surpassing the ₹1,50,691 crore recorded as of June 30, 2023.

Brokerage firm Motilal Oswal has maintained a buy rating on IndusInd Bank’s shares, highlighting the bank’s consistent loan growth and an expectation for this trend to persist. The firm also pointed out the bank’s emphasis on increasing retail deposits as a positive indicator. This aligns with the observation that the bank has steadily increased its earnings per share over the years.

For the quarter that ended in June, the bank reported a 32.5% rise in net profit, amounting to ₹2,123.6 crore. Net Interest Income (NII) increased by 18% compared to the first quarter of FY23, with the net interest margin (NIM) for the first quarter of FY24 at 4.29%.

Furthermore, last month, IndusInd Bank announced the launch of the ‘Virtual Commercial Card’ in collaboration with Visa. This virtual card is designed to enhance security for corporate and travel agent cross-border transactions, providing added layers of control over international expenses.