IndusInd Bank Q4 profit jumps nearly 50%, dividend declared at Rs 14 per share

IndusInd Bank’s profit for the January to March 2023 quarter rose to Rs 2,040.5 crore, slightly higher than the CNBC-TV18 poll projection of Rs 2,011.8 crore. The profit for the last quarter of the fiscal year was 49.9 percent higher compared to the same quarter last year.

IndusInd Bank reported a net interest income of Rs 4,669.4 crore, 17 percent higher than the corresponding quarter last fiscal year. It, however, fell marginally short of poll expectations.

The bank’s board has also recommended the payment of dividend at Rs 14 per equity share for the financial year 2022-23.

The lender highlighted continued momentum on the realisation of deposits. Its retail deposits as defined by liquidity coverage ratio (LCR) grew by 19 percent YoY and four percent QoQ and the share of deposits improved to 43 percent from 41 percent YoY.

Loan growth acceleration has been driven by retail businesses, it said in a presentation as retail loans grew by 7 percent sequentially improving the share of retail loans at 54 percent. Corporate growth during the quarter was driven by mid and small corporate at 7 percent QoQ and large corporate at 5 percent QoQ.

IndusInd Bank’s core fee income grew by 27 percent YoY and 8 percent QoQ during Q4FY23. The contribution of retail consumer banking fee for Q4FY23 at 74 percent of total fee income.

The lender added that the bank is focused on expanding the branch network, growth driven by retail customer acquisitions and scaling up new businesses – affluent and NRI. It is also looking at building merchant acquiring business, and executing digital 2.0 with planned individual and SME launches.

Following the announcement of the results, the stock ended 1.25 percent lower at Rs 1,102 on BSE.