IndusInd Bank Q2FY25 Result:IndusInd Bank announced its second quarter results on Thursday. According to the declared results, the net profit of the bank declined by 40% to Rs 1331 crore. Whereas in the same quarter last year, the net profit of the bank was Rs 2202 crore. Despite this, the total income of the bank increased to Rs 14871 crore, which was Rs 13530 crore in the same period last year.
What was the reason for the decline in profits?
The main reasons for the decline in the bank’s net profit were poor asset quality and increased amount of provisioning. The bank’s gross non-performing assets (Gross NPA) increased to 2.11%, compared to 1.93% in the same period last year. With this, the net NPA of the bank reached 0.64%, which was 0.57% last year.
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Competition for deposits in the industry has increased: CEO
Sumant Kathpalia, Managing Director and CEO, IndusInd Bank, said, “The Indian economy has performed strongly despite global uncertainties. The banking industry is witnessing competition for deposits and diverging trends in secured and unsecured debt. “IndusInd Bank has also adjusted its strategy accordingly, with a particular focus on increasing retail deposits.”
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10 big things about bank results
1. Net Profit: Rs 1331 crore, which is 40% less than the same quarter last year.
2. Total income: Rs 14871 crore, which was Rs 13530 crore in the same quarter last year.
3. Net Interest Income (NII): Rs 5347 crore, growth of 5%.
4. Gross NPA: 2.11%, which was 1.93% in the same quarter last year.
5. Net NPA: 0.64%, which was 0.57% in the same quarter last year.
6. Provisioning and Contingency: Rs 1820 crore, which was Rs 974 crore in the same quarter last year.
7. Capital Adequacy Ratio (CAR): 16.51%, which was 18.21% in the same quarter last year.
8. Net Interest Margin (NIM): 4.08%, which was 4.29% in the same quarter last year.
9. CASA Ratio s: Was 35.87%, which shows strong growth in deposits.
10. Operating Expenses increased to Rs 3,932 crore, which was Rs 3,450 crore last year.
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Asset Quality and Capital Adequacy
There has been a decline in the asset quality of IndusInd Bank, due to which the bank had to increase the provisioning. Due to this, the provisioning and contingency amount reached Rs 1820 crore. The capital adequacy ratio of the bank fell to 16.51%, which was 18.21% in the same period last year.
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The decline in the bank’s performance is mainly due to increased bad loans and higher provisioning. Although there has been a decline in the net profit of IndusInd Bank, but there has been an increase in the total income and net interest income of the bank. Despite the deterioration in the bank’s asset quality and increased provisioning, the bank has tried to increase retail deposits and remain competitive.