IndusInd Bank - Third Quarter Results FY 16-17

Conforming to the tradition of releasing its financial results first among all banks in India, IndusInd Bank released its unaudited performance results today for the third quarter ended the 31st December 2016

Highlights of the Performance of IBL as a growth leader are as under:

  • The third quarter was of steadfast performance, inspite of disruptive market elements.
  • Net Profit for the Q3 FY16-17 was Rs. 751 Crore showing a growth of 29% (this will be one of the highest in the industry) as compared to Q3 FY15-16. Net Interest Income grew by 35%.
  • The quarterly profit is in line with the projected net profit of Rs. 2,901 Crore for FY16-17 (Rs. 2,286 Crore for FY16). Net profit for 9M FY17 was Rs. 2,116 Crore.
  • Return on Equity (RoE) has improved from 14.05% in Q3 FY16 to 15.72% in Q3 FY17.
  • Net Interest Margin hit the aspirational 4% mark for two quarters consecutively.
  • Advances at Rs. 1,02,770 Crore and Deposits at Rs. 1,19,218 Crore have shown a growth respectively of 25% and 38%. The large increase in deposits is due to demonetization of high value Indian currency.
  • Net NPA has slightly gone up from 0.37% in Q2 FY17 to 0.39% in Q3 FY17.
  • The loan mix stood at 58:42 for Corporate : Consumer. The portfolio is well balanced with commercial vehicle loans at 14% of the total advances.
  • Yield on loans to corporates was 9.76% (9.92% in Q2 FY17) and consumer finance was 14.53% (14.57% in Q2 FY17).
  • The Branch Network was 1,075. As per the Planning Cycle 3 (2014-17), the network is to be doubled from 602. The doubling is likely to be achieved.
  • The stake of Promoters (IIHL and IL) has increased from 14.86% as on 30th September 2016 to 14.99% as on 31st December 2016 due to purchase of shares by IIHL in the market to maintain the promoter stake at 15%.
  • The price of IBL share closed at Rs. 1161.85 (0.19% increase) in the BSE.