IndusInd Bank Q4 Results: IndusInd Bank reports 46% rise in profits, check out other details

Mumbai based private lender IndusInd Bank posted its results for the Jan - Mar ‘23 period recently. The results came in above the expectations of the market with the net profit surpassing expectations.

The banking company’s net profit at the end of the March quarter came in at Rs 2,043 crores, up 45.8% from the previous year and above the market estimate of Rs 2,000 crores. Meanwhile, the lender’s total income for the Jan - Mar ‘23 period came in at Rs 12,174.31 crores, up 24.7% from the prior year.

2023 has not been a decent year for the IndusInd Bank share price. So far this year, the IndusInd Bank share price is down 10.2%. However, over the past year the IndusInd Bank share price has gained by more than 16%.

So, how did the lender perform in other areas? What was IndusInd Bank net interest income? What were IndusInd Bank advances? What were its deposits? Let’s try and decode! 

Decoding IndusInd Bank Q4 Earnings 

IndusInd Bank Total Income: IndusInd Bank reported a yearly rise of 24.7% in its total income which came in at Rs 12,174.31 crores. The rise in the total income can be attributed to the 30% growth witnessed in the retail banking income to Rs 8,160 crores from the previous year. Income from corporate banking also grew by 38% from the prior year to Rs 3,071.8 crores. 

IndusInd Bank Advances: IndusInd Bank reported an advances growth of 21.3% from the previous year to Rs 2,89,924 crores. The loan mix was tilted towards retail with 54% of the mix and 46% for wholesale. 

IndusInd Bank Deposits: IndusInd Bank’s deposits at the end of the March quarter stood at Rs 3,36,120 crores, up 14.6% from the prior year. Term deposits formed the bulk of the deposits mix at Rs 2,01,392 crores which is almost 60% of the total deposits. Savings and current account deposits at the end of the March quarter stood at Rs 84,128 crores and Rs 50,600 crores, respectively. 

IndusInd Bank Net Interest Income: Net interest income for the lender reported a yearly rise of 17.2% to Rs 4,669 crores for the Jan - Mar ‘23 period. 

However, the net interest margin showed modest yearly growth of just 1.9% to come in at 4.28% for the Jan - Mar ‘23 period. 

IndusInd Bank Net Profit: IndusInd Bank’s net profits for the Jan - Mar ‘23 period came in at Rs 2,045 crores, up 45.8% from the previous year. 

IndusInd Bank Dividend: The lender declared a dividend of Rs 14 per share. 

IndusInd Bank Other Key highlights 

• Gross NPA: 1.98%
   
• Client Base: 34 million
   
• Branches: 2,606 (up 15.1% from the previous year)

IndusInd Bank Earnings: Analyst view

Jefferies: The renowned global brokerage has a “Buy” rating on the stock with a price target of Rs 1,550. Eventual decline in credit costs coupled with a robust growth in profits have been cited by the firm as tailwinds that can drive the IndusInd Bank share price higher in the near term.

Kotak Institutional Equities: The top domestic brokerage has a “Buy” rating on the stock with a price target of Rs 1,350. Improvement in asset quality and higher asset yields have been highlighted by the firm that can lend strength to the IndusInd Bank share price in the near future.

Emkay Global: The renowned brokerage has a “Buy” rating on the stock with a price target of Rs 1,600. The extension of the tenure of CEO Sumant Kathpali has been cited as a key highlight of the latest earnings of the firm along with the profit growth which can drive the IndusInd Bank share price higher.

Sharekhan: The top brokerage has a “Buy” rating on the stock with a price target of Rs 1,400. The firm has highlighted the lender's strong advances and deposits growth as triggers that can drive the IndusInd Bank share price higher in the near term.

This is not investment advice. Investments in the securities market are subject to market risk, read all the related documents carefully before investing. Past performance is not indicative of future returns.