IndusInd Bank, thanks to lower provisioning and higher other income, posted a 99% (YoY) jump in net profit for Q1Fy22 at Rs.1016 crore while Net Interest Income (NII) rose 8% at Rs.3564 crore. Other income was up 18% at Rs.1788 crore.
Total provisions fell 18% to Rs.1844 crore. This was despite the fact that during the quarter, it added Rs.2762 crore worth of bad loans on account of collection issues of which, 85% was from the consumer segment alone.
Asset quality went down with Gross NPA rising from 2.67% to 2.88% (QoQ)and Net NPA also going up to 0.84%, up 15 bps.
The Bank's Total Capital Adequacy Ratio as per Basel III guidelines improved to 17.57% (including PAT at 17.89%) as on June 30,2021, as compared to 15.16010 as on June 30,2020. Tier I CRAR was at 16.87% as of June 30,2021 compared to 14.49% as of June 30, 2020. Risk-weighted Assets were at Rs.2,72,367 crores (as against Rs.2,61,722 crores as at June 30, 2020).
As of June 30, 2021, the Bank's distribution network included 2,015 branches and banking outlets and 2,870 onsite and offsite ATMS across 760 geographic locations. The number of employees were at 30,024 v/s 30,331 (YoY).
The market reacted positively to these earnings. From its close of Rs.975.65, it opened higher at Rs.995 and went on to hit an intraday high at Rs.1008.80. Its 52-week high is at Rs.1119.20.