IndusInd Financial Institution Reports Robust Q2 Earnings with 22% Rise in Net Profit
In a promising financial update, IndusInd Financial Institution announced a substantial 22% surge in its consolidated net profit, reaching INR 2,202 crore for the second quarter of the fiscal year 2023-24. This remarkable performance was attributed to a decrease in non-performing loans and an increase in interest income, marking a notable improvement from the profit of INR 1,805 crore in the corresponding period of the previous year.
The institution's total revenue for the quarter under review witnessed significant growth, reaching INR 13,530 crore, as compared to INR 10,719 crore in the same period of the previous fiscal year, as stated in a regulatory filing by IndusInd Bank. Notably, the bank's interest income for the quarter amounted to INR 11,248 crore, compared to INR 8,708 crore in the corresponding period of the previous year.
Regarding asset quality, the lender reported improvements, with gross non-performing assets (NPAs or bad loans) decreasing to 1.93% of gross advances as of September 2023, compared to 2.11% in the same period the previous year. Similarly, net NPAs reduced to 0.57% from 0.61%.
As a result of these positive developments, provisions (excluding tax) and contingencies declined to INR 974 crore, in contrast to INR 1,141 crore in the same quarter of the previous year. Additionally, the Capital Adequacy Ratio improved, reaching 18.21% at the end of September 2023, compared to 18.01% in the previous year.
Bandhan Bank Posts Impressive Q2 Results
the other hand, Bandhan Bank reported an outstanding performance in the second quarter ending September 30, 2023, with its net profit increasing more than threefold to INR 721 crore. In comparison, the Kolkata-based private sector lender had posted a profit of INR 209.30 crore in the same quarter a year ago.
During July-September of this fiscal year, the total revenue surged to INR 5,032 crore, as opposed to INR 4,250 crore in the corresponding period of the previous fiscal year, as per the regulatory filing by Bandhan Bank. The net interest income also experienced growth, rising to INR 2,443 crore in Q2 FY24, compared to INR 2,193 crore in Q2 FY23.
However, in terms of asset quality, the lender faced some challenges as gross non-performing assets (NPAs or bad loans) increased to 7.32% of gross advances by the end of September 2023, from 7.19% in the second quarter of 2022-23. Similarly, net NPAs, or bad loans, also saw an increase to 2.32%, up from 1.86%.