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INDUSIND BANK LIMITED ANNOUNCES FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED MARCH 31, 2022
Q4 FY 2021-22 Key Highlights
o Net Interest Income (NII) grew by 13% YoY from ₹ 3,535 crores to ₹ 3,985 crores
o NIM improved to 4.20% as compared to 4.13% as at March 31, 2021 and 4.10% as at December 31, 2021.
o Other income grew by 7% YoY to ₹ 1,905 crores from ₹ 1,780 crores
o Net Profit grew by 51% YoY from ₹ 926 crores to ₹ 1,401 crores for the quarter ended March 31, 2022. Net profit for the FY 2021-22 grew by 64% to ₹ 4,805 crores as compared to ₹ 2,930 crores for FY 2020-21.
o Healthy deposits growth of 15% YoY from ₹ 2,55,870 crores to ₹ 2,93,349 crores; savings deposits grew by 25% YoY from ₹ 71,065 crores to ₹ 88,826 crores
o Gross NPA stands at 2.27%, Net NPA at 0.64% and PCR at 72% as at March 31, 2022
o CRAR as on March 31, 2022 at 18.42% as compared to 17.38 % on March 31, 2021
o Balance sheet footage crossed 4 trillion mark as at March 31, 2022
o Board recommends dividend of ₹ 8.5 per share (85%) for FY 2021-22
The Board of Directors of IndusInd Bank Limited approvedthe financial resultsof the Bank for the year ended March 31, 2022, at their meeting held in Mumbai on Friday, April 29, 2022.
NIM at 4.20%, Net NPA at 0.64%, Provision Coverage Ratio at 72%, Capitaladequacy (CRAR) ratioat 18.42% and Liquidity Coverage Ratio at 127% underscore the strength of operating performance of the Bank and adequacy of capital and liquidity buffers.
CONSOLIDATED FINANCIAL RESULTS
The Bank’s financial resultsinclude the financialresults of its wholly ownedsubsidiary, Bharat FinancialInclusion Limited (BFIL), a business correspondent (BC) of the Bank involved in originating smallticket MFI loansfor the Bank and IndusInd Marketing and Financial ServicesPrivate Limited (IMFS) an associateof the Bank.
Profit & Loss Account for the Quarter ended March 31, 2022
Net Profit for the quarter ended March 31, 2022 was ₹ 1,401 crores as compared to ₹ 926 cores during corresponding quarter of previous year up by 51% YoY.
Pre Provision Operating Profit (PPOP)at ₹ 3,381 crores for the quarterended March 31,2022 registered a growth of8% over the corresponding quarterof previous year at ₹ 3,129 crores.PPOP/Advance ratio for the quarterended March 31, 2022 steady at 5.8%.
Net InterestIncome for the quarter ended March 31, 2022 at ₹ 3,985 crores, grew by 13% YoY and 5% QoQ. Net Interest Margin for Q4 FY 2022 stood at 4.20% against4.13% for Q4 of FY 2021 and 4.10% for Q3 of FY 2022.
Other incomeat ₹ 1,905 crores for the quarterended March 31, 2022 as against ₹ 1,780 croresfor the corresponding quarter of previous year, grew by 7% YoY. Core Fee grew by 9% to ₹ 1,644 crores as against ₹ 1,508 crores corresponding quarter of previous year.
Operating expensesfor the quarterended March 31, 2022 were ₹ 2,509crores as against₹ 2,186 crores for the corresponding quarter of previous year, grew by 15%.
Profit & Loss Account for the year ended March 31, 2022
Net Profitfor the year ended March 31, 2022 was ₹ 4,805 croresas compared to ₹ 2,930crores during the previous year, grew by 64% YoY.
Pre ProvisionOperating Profit (PPOP)at ₹ 13,098 crores for the year ended March31, 2022 over the previous year ₹ 11,872 crores, grew by 10% YoY.
For theyear ended March31, 2022 the Bank earnedTotal Income (Interest Income and FeesIncome) of ₹ 38,230 crores as compared to ₹ 35,501 crores for the previous year, grew by 8% YoY.
For the year endedMarch 31, 2022 Total Expenditure (Interest Expenses and Operating Expenses) were ₹ 25,132 crores as compared to ₹ 23,629 crores for the previous year, grew by 6% YoY.
Net InterestIncome for the year endedMarch 31, 2022 increased to ₹ 15,000crores as comparedto ₹ 13,528 crores for the previous year, grew by 11% YoY.
Other incomeat ₹ 7,408 crores forthe year endedMarch 31, 2022,grew by 14% over the previous yearat ₹ 6,501 crores.
Operating expenses for the year ended March 31, 2022 were ₹ 9,311 crores, as against ₹ 8,157 crores for the previous year, grew by 14%.
Balance Sheet as of March 31, 2022
Balance sheetfootage as on March 31, 2022 was ₹ 4,01,967crores as against₹ 3,62,903 croresas on March 31, 2021, showing growth of 11%.
Deposits as on March31, 2022 were₹ 2,93,349 croresas against ₹ 2,55,870 crores,an increase of 15% overMarch 31, 2021. CASA depositsincreased to ₹ 1,25,333 croreswith Current Accountdeposits at ₹ 36,507 croresand Savings Accountdeposits at ₹ 88,826 crores.CASA deposits comprised 43% of totaldeposits as at March 31, 2022.
Advances as of March31, 2022 were₹ 2,39,052 croresas against ₹ 2,12,596 crores,an increase of 12% overMarch 31, 2021.
ASSET QUALITY
The loan book quality remains stable. The Gross NPA were at 2.27% of gross advances as on March 31, 2022 as against 2.48% as on December31, 2021. Net Non-Performing Assets were 0.64% of net
advances as on March 31, 2022 as compared to 0.71% on December 31, 2021.
The Provision Coverage Ratio was consistent at 72% as at March 31, 2022 as well as at December 31, 2021. Provisions and contingencies for the yearended March 31,2022 were ₹ 8,293 crores(comprising of provision for credit and otherlosses at ₹ 6,665 croresand towards taxeson income at ₹ 1,628crores) as compared to ₹ 8,942
crores (comprising of provision forcredit and otherlosses at ₹ 7,943 croresand towards taxeson income at ₹ 999 crores) for the previous year, reduced by 7% YoY. Total loan related provisions as on March 31, 2022 were at
₹8,362 crores (3.50% of loan book).
CAPITAL ADEQUACY
The Bank’s Total CapitalAdequacy Ratio as per Basel III guidelines improved to 18.42% as on March 31, 2022, as compared to 17.38% as on March 31, 2021. Tier 1 CRAR was at 16.80% as on March 31, 2022 compared to 16.83% as on March 31, 2021 Risk-Weighted Assets were at ₹2,95,131crores as against ₹2,72,912crores a year ago.
NETWORK
As of March 31, 2022, the Bank’s distribution network included 2,265branches/banking outlets and 2,767 onsite and offsite ATMs, as against 2,015 branches/banking outletsand 2,872 onsiteand offsite ATMs as of March 31, 2021. The client base stood at 32 million as on March 31, 2022.
Commenting on the performance, Mr. Sumant Kathpalia, Managing Director & CEO, IndusIndBank said: "The financial year 2021-22saw considerable volatility with economic activityimpacted by Covid second and third wave. The economy however showedstrong resilience with activity levelsnow bouncing back to pre Covid levels across various segments, supported by effective policy measures. The Bank too saw improvement across disbursements, deposits and asset quality with receding Covid impact. Our deposits grew by 15% while loan growth accelerated to 12% duringthe year. We maintained our healthy profitability levels with Net Interest Margin as 4.20% for FY22. Our operating profits before provisions grew by 8% for Q4 and 10% for FY22. With improvement in our portfolioquality, our year-on-year provisions reduced by 10% for Q4 and 7% for FY22. This reflected in strong growth in our Net Profit of 51% YoY forQ4 and 64% YoY for the full year ended FY22. The GNPA and NNPA ratios improved to 2.27% and 0.64% from 2.67% and 0.69% YoY respectively. While the global economyis impacted by recent geopolitical developments, we believeIndia is well positioned to navigate the turbulence with continued fiscaland monetary policysupport. The Banktoo would participate in the growth recovery while remaining watchful on the economic developments."