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IndusInd Bank will announce its Q2 financial performance for FY23, on October 19. The stock will be in focus on exchanges. The bank has already witnessed double-digit growth in advances and deposits for the second quarter. Also, in the quarter, healthy disbursement is expected to enable steady margins. Asset quality and performance in microfinance will be keenly watched.
Ahead of Q2 results, IndusInd shares witnessed buying sentiments on Tuesday. The shares ended at ₹1,223.20 apiece up by 1.95% on BSE.
IndusInd Bank has already presented its provisional data for deposits and advances for the second quarter of FY23.
In Q2FY23, IndusInd registered net advances of ₹2,59,647 crore up by 18% yoy and 5% qoq. Deposits stood at ₹3,15,824 crore higher by 15% yoy and 4% qoq. CASA ratio is at 42.4% in Q2FY23 versus 42.1% in Q2FY22 against 43.2% in Q1FY22. Retail Deposits and Deposits from Small Business Customers amounted to ₹1,29,895 crore as of 30 September 2022 as compared to ₹1,24,102 crore as of 30 June 2022.
During the first quarter of FY23, the bank posted a net profit of ₹1,603.29 crore up by 64% yoy on the back of lower provisions and higher net interest income. Net interest income stood at ₹4,125 crore rising by 16% yoy and 4% qoq. The net interest margin was 4.21% against 4.06% for QI of FY 2022 and 4.20% for Q4 of FY 2022.
As of June 30, 2022, gross NPA was at 2.35% of gross advances as of June 30, 2022, against 2.27% as of March 31, 2022. The gross NPA declined from 2.88% in Q1 last year.
What to expect from IndusInd Bank in Q2FY23?
In its Q2FY23 preview report, ICICI Direct said, “IndusInd Bank has continued to report robust business growth with 18% YoY and 5% QoQ growth in advances to ₹2.59 lakh crore. Healthy disbursement is expected to enable steady margins and NII at ₹4,265 crore, up 16.6% YoY, while non-interest income is seen to grow 11.1% YoY. Building of business capabilities to keep CI higher at 44.2% but lower credit cost at ~45 bps (non-annualised) to boost earnings at ₹1,760 crore; up 10% QoQ and 58% YoY. Asset quality is expected to remain steady with GNPA ratio at 2.3%.”
Further, IDBI Capital stated in Q2 preview report, that expects IndusInd Bank growth in NII at 17.4% YoY, and PAT at higher double-digit growth at 57.9% due to lower provision YoY. Expect advances growth of 17.6% and strong deposits growth at 14.7%. The bank’s performance of Micro Finance and Asset quality of retail segments and updates on new business segments will be in focus.
ICICI Direct expects IndusInd Bank to report an NII of ₹4,264.5 crore up by 16.6% yoy and 3.4% qoq. Net profit is seen at ₹1,759.2 crore higher by 58% yoy and 9.7% qoq.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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John Miller has been writing about science, gaming, and tech culture for over a decade. He’s a top-rated reviewer with extensive experience helping people find the best deals on tech and more.
