Private lender IndusInd Bank on Friday announced a 190% year-over-year (year-over-year) jump in net income to Rs 876 crore for the quarter ended March 2021 due to strong interest income and reduced provisioning. Provisions fell 24% year-on-year to Rs 1,866 crore.
The lender’s operating profit grew 8% yoy to Rs 3,062 crore while net interest income (NII) increased 9.4% yoy to Rs 3,535 crore.
Sumant Kathpalia, MD and CEO of IndusInd Bank, said: “There is a little slowdown right now because of Covid-19. We will reassess the situation in May. The bank will continue to focus on collections, said Kathpalia. Collection efficiency in the March quarter remained at 98%.
The lender’s net interest margins (NIMs) declined 12 basis points (bps) year-on-year to 4.13%, but grew 1 bps on a sequential basis.
Asset quality deteriorated somewhat in the March quarter, after the status quo was lifted on the Supreme Court’s declaration of non-performing assets. The gross non-performing assets (NPA) ratio increased 93 bps to 2.67%, from 1.74% in the previous quarter. Likewise, the net NPA ratio rose 47 basis points to 0.69%, from 0.22% in the December quarter. The provisioning coverage ratio (PCR) remained at 75% in the fourth quarter.
The lender claimed that fee income had returned to pre-covid levels. Base charges increased 8% yoy and 8% qoq to Rs 1,508 crore. Operating expenses for the quarter ended March 31, 2021 increased slightly to Rs 2,186 crore, compared to Rs 2,148 crore for the corresponding quarter of the previous year. Tax charges for the period increased 240% to Rs 319.89 crore.
Advances increased 3% yoy to Rs 2.12 lakh crore. Deposits increased 27% year on year to Rs 2.55 lakh crore. Current Account Savings Account (CASA) deposits stood at Rs 1,06,791 crore with current account deposits at Rs 35,726 crore and savings account deposits at Rs 71,065 crore. CASA deposits represented 42% of total deposits as of March 31, 2021.
The capital adequacy ratio (RCA) stood at 17.38% with a CET1 ratio of 16.83% at the end of March 2021.