IndusInd Bank has given robust updates for Q4: Key numbers

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IndusInd Bank Q4 Updates

IndusInd Bank has updated the exchange on their Q4 numbers. We will check the numbers and also there is a negative for the bank - a PIL has been filed on the promoters of the bank. Let us look at the details.

Update on Q4 numbers

  • Deposits - The deposits reported by the bank for Q4 are Rs 2.93 lakh crore as against Rs 2.85 lakh crore in the December quarter (3% growth). YoY the deposits have increased from Rs 2.56 lakh crore, a growth of 15%. Retail Deposits and Deposits from Small Business Customers amounted to Rs 1.21 lakh crore as of 31 March 2022 as compared to Rs 1.14 lakh crore as of 31 December 2021.
  • Net advances - The net advances increased to Rs 2.39 lakh crore in Q4 from Rs 2.28 lakh crore in Q3FY22, up by 4%. Year-on-year, there was a growth of 13% in net advances. In Q4FY21, the net advances were 2.12 lakh crore.
  • CASA Ratio - The current account savings account (CASA) ratio increased to 42.8% in Q4FY22 compared to 41.8% in Q4FY21 and from 42.2% in Q3FY22.

What is PIL about?

  • A PIL has been filed before the Delhi High Court, seeking a Special Investigating Team (SIT) probe into the "fit and proper status" of the Hinduja Group as the promoters of IndusInd Bank.
  • The plea urged the high court to direct the RBI to disallow the policy to increase stakes to 26% by promoters tainted with criminal antecedents and financial fraud indictment in private sector banks.
  • The petition says that allowing high shareholding for corporates gives a clear message that corporates can come and siphon off public money for their business.
  • The plea added that the Hinduja family, being a large shareholder in the IndusInd Bank should be probed to check for the "fit and proper" status criteria.

Brokerage Radar:

Morgan Stanley has maintained its 'overweight' rating on the banking stock with a target price of Rs 1,350.  As per MS, the bank is optimistic about its growth prospects, steady margin and better asset quality. Management expects growth to accelerate as MFI disbursements normalize. It expects credit costs to normalize in FY23.

Indusind bank is often in the news and sadly for the investors for the wrong reasons. Last year in November we covered an update on the bank around evergreening. Check that out too.