The bank’s core income or net interest income grew 18% y-o-y to ₹5,296 crore at the end of December quarter. Net interest margin for third quarter was flat at 4.29%. Loan book grew 20% y-o-y to ₹3.27 trillion and deposits grew 13% y-o-y to ₹3.68 trillion.

“We are looking at credit growth outlook of 18-22% for FY24 and FY25. We are seeing strong growth in vehicle finance, merchant acquiring bus-iness, MFI loans, consumer loans like credit card, personal loans, loan against property and small and med-ium business,” said Sumanth Kathpalia, MD & CEO of the Bank.

The bank’s gross non-performing asset (NPA) was ₹6,377 crore at the end of December quarter compared to ₹5,710.8 crore in the corresponding period a year ago and ₹6,164.2 crore in the previous quarter. As a percentage of total assets, gross NPA stood at 1.92% compared to 2.06% in the same quarter last year and 1.93% in the previous quarter.

Provisions fell 9% y-o-y to ₹969 crore at 31 December 2023 as compared to ₹1,065 crore for the corresponding quarter in the previous year.

“We had fresh addition of bad loans worth ₹1,765 cr in the quarter, ₹1,453 crore from consumer loans and ₹312 crore from corporate loans business. Flow has come from vehicle finance, consumer loan and MFI business,” he said.

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“We are looking at a credit cost of 100-110 bps in the near future and RoA of 2%,” he added.

Following the earnings, shares of IndusInd Bank closed 1.82% down at ₹1,613.15 apiece on BSE on Thursday.

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Published: 18 Jan 2024, 10:25 PM IST