Hinduja-promoted IndusInd Bank has reported a 57% year-on-year rise in net profit to Rs 1,805.22 crore for the quarter ended September 2022 amid strong loan growth and net interest income. 

Provisions also declined as asset quality improved during the quarter.

The private lender’s loan book grew 18% YoY, ahead of the sector’s growth at 16%. Corporate advances grew 24% YoY.

Vehicle loan disbursement stood at a record Rs 10,660 crore while micro finance loans were at Rs 9,700 crore, said IndusInd Bank managing director and CEO Sumant Kathpalia in a post-earnings call.

“We have always said our (credit) growth will be at 16-18% CAGR. We expect our loan growth to be between 18% and 20% this fiscal," Kathpalia said.

Net interest income, or the difference between interest earned on loans and that paid on deposits, rose 18% YoY to Rs 4,302 crore. Led by a 24% growth in fee earnings, other income increased 9% to Rs 2,011 crore.

Net interest margin (NIM) improved to 4.24% in September 2022 from 4.07% a year ago. The bank increased its yield on assets to 8.65% from 8.44% in the year-ago period.

The bank’s net non-performing assets (NPAs) fell to 0.61% of loans from 0.80% a year ago. Provisions declined to Rs 1,141 crore from Rs 1,707 crore in the earlier year.

Kathpalia said the bank will continue to fund growth from granularisation of deposits. “We have also said our liabilities will be priced higher at 50-75 basis points than the market,” he added.

As on 30 September, IndusInd Bank’s total loans were at Rs 2.6 trillion, up 18% YoY and 5% sequentially. 

Kathpalia said that 47% of the bank’s total advances, or Rs 1.2 trillion, were for corporate banking. This segment is likely to grow 20% going ahead, he added.