IndusInd Bank has reported a 50% year-on-year jump in standalone net profit to Rs 2,040.51 crore for the quarter ended March 2023, boosted by higher interest income and lower provisions.

The board has also recommended a dividend of Rs 14 per share for the financial year 2022-23 compared with Rs 8.5 per share a year ago.

Net interest income of the private lender stood at Rs 4,669 crore during the fiscal fourth quarter ended March 2023, up 17% from Rs 3,985 crore in Q4FY22.

Net interest margin in Q4FY23 was 4.28% versus 4.2% in Q4FY22 and 4.27% in Q3FY23.

Provisions and contingencies were at Rs 1,030 crore, down 30% from Rs 1,461 crore a year ago. The bank said the total loan-related provisions were at Rs 7,324 crore.

The bank’s asset quality improved, with both gross non-performing assets (NPAs) and net NPAs on the decline. Gross NPA ratio fell to 1.98% in the January-March period, compared with 2.27% in the year-ago quarter and 2.06% in the preceding December quarter.

Net NPA fell to 0.59% of net advances, from 0.62% in the December quarter and 0.64% in the year-ago quarter.

The bank’s total income grew 16% YoY to Rs 6,823 crore while other income rose 13% to Rs 2,514 crore.

Fee income rose by 13% to Rs 2,514 crore.

Deposits grew 15% to Rs 3.36 lakh crore as of March 2023, up 15% from Rs 2.93 lakh crore a year ago.

The bank’s loan book grew 21% to Rs 2.89 lakh crore in the quarter ended March 2023 versus Rs 2.39 lakh crore a year ago.

The provision coverage ratio (PCR) was at 71% as of March 2023.

The capital adequacy stood at 17.86% as on March 31, 2023.

“The loan growth accelerated to 21% year-on-year and retail deposit growth was at 19%. Quarterly net profit crossed Rs 2,000 crore mark for the first time. Full-year profit was at Rs 7,443 crore, up 55% YoY and net worth of the bank is in excess of Rs 50,000 crore,” said IndusInd Bank managing director and CEO Sumant Kathpalia.