IndusInd Bank's Q1FY18 net profit up 26%, provisions rise

Key Highlights: 

• IndusInd Bank's net profit at Rs 836.55 crore in Q1FY18
• IndusInd Bank's gross NPA at Rs 1,271.68 crore, rising by 47.75%  yoy
• IndusInd Bank's NII grows by 31% and 6% respectively

IndusInd Bank surpassed analyst estimates by registering over 26% growth in its net profit for the first quarter ended June 30, 2017. 

The bank's net profit stood at Rs 836.55 crore in Q1, a rise of 26.48% from Rs 661.38 crore in the corresponding period of the previous year. It also reported growth of 11.30% from Rs 751.61 crore in preceding quarter. 

Analysts at Kotak Institutional Equities estimated IndusInd's bottom-line to be at Rs 818.3 crore, up by 23.7% year-on-year (YoY) and 8.9% quarter-on-quarter (QoQ).

Net Interest Income (NII) for the period was at Rs 1,774.06 crore, witnessing growth of 30.78% yoy and 6.39% qoq. 

Romesh Sobti, MD & CEO, IndusInd Bank said, “The quarter saw the momentum of the economy gradually picking up as the process of remonetisation moved towards completion. With consumption activity slowly picking up, there is a sustained rise in credit uptake.  Against the challenging environment, the Bank has shown consistent performance, riding on the positive sentiment in the economy."

Provisions were at Rs 309.97 crore - which increased by 34.49% yoy but saw decrease of 27.93% qoq. 

IndusInd in its audit report mentioned that in line with the policy approved by the board of directors, the bank has transferred an amount of Rs 70 crores towards floating provision for advances during the quarter. 

It further stated that this floating provision has been considered while computing the net NPAs and Provision Coverage Ratio. 

Gross NPAs in percentage terms increased to 1.09% from 0.91% in Q1FY17 and 0.93% in Q4FY17. In value terms, it stood at Rs 1,271.68 crore, rising by 47.75% yoy and 20.55% qoq. 

Capital Adequacy Ratio of the bank was at 16.18% in Q1 compared to 15.42% and 15.31% in Q1FY17 and Q4FY17 respectively. 

Total Deposits as on June 30, 2017 is at Rs. 1,33,673 crores as compared to Rs. 1,01,768 crores on June 30,2016, up by  31%.

Total Advances as on June 30, 2017 is at Rs.1,16,407  crores as compared to Rs. 93,678 crores on June 30, 2016, recording a growth of 24 %.

 CASA (Current Accounts- Savings Accounts) Ratio improved to 37.78% against 34.43% in June 30, 2016.