IndusInd Bank Q2 Updates: Net Advance Rise 13%

IndusInd Bank Ltd.'s net advances rose 13% on a yearly basis to Rs 3.57 lakh crore in the July-September quarter, according to provisional figures released by the bank on Friday.

The bank's deposit rose 15% to Rs 4.13 lakh crore in the second quarter ended June 2024, according to an exchange filing.

The CASA ratio—the proportion of deposits that come from low-cost current and savings accounts—dipped to 35.9% from 36.7% sequentially. A lower CASA ratio indicates that the bank relies heavily on costlier wholesale funding, which can hurt the bank's margin.

Retail deposits and deposits from small business customers amounted to Rs 1.81 lakh crore as of Sept. 30, 2024, compared to Rs 1.74 lakh crore as of June 30, 2024.

In August, the Reserve Bank of India granted approval to IndusInd Bank to set up a wholly owned subsidiary to undertake mutual funds' asset management business. The approval includes an equity capital investment in the new subsidiary, subject to additional conditions specified in the RBI's letter.

IndusInd Banks profit rose 2% year-on-year in the first quarter of the current fiscal 2025, missing analysts' expectations. While the profit stood at Rs 2,171 crore, the net interest income rose 11% year-on-year to Rs 5,408 crore.

The lender's asset quality declined, with the gross non-performing asset ratio increasing by 10 basis points sequentially to 2.02%. The net NPA ratio also rose by 3 basis points quarter-on-quarter. Fresh NPA additions for the quarter totaled Rs 1,536 crore, up from Rs 1,428 crore in the March quarter.

Shares of IndusInd Bank rose as much as 1.67% during the day to Rs 1,410.95 apiece on the NSE. However, it pared the gains to close 0.35% lower at Rs 1,382.85, compared to a 0.79% decline in the benchmark Nifty 50.

The stock has fallen by 1.32% in the last 12 months and by 13.51% year-to-date.

Out of 49 analysts tracking the company, 43 maintain a 'buy' rating, five recommend a 'hold,' and one suggests a 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 26.5%.