Hinduja Group-Backed IndusInd Bank Posts Strong Q1FY25 Results With Robust NII Growth

IndusInd Bank has unveiled its financial results for the April-June quarter of fiscal 2024-25 (Q1FY25), showcasing a commendable performance despite a challenging environment. The private sector lender reported a 2.2% rise in consolidated net profit, reaching ₹2,171 crore, up from ₹2,123.6 crore in the same period last year. This steady growth highlights the bank's resilience and adaptability in the face of external pressures.

One of the standout achievements for IndusInd Bank this quarter was the impressive 11.1% increase in net interest income (NII), which surged to ₹5,408 crore from ₹4,867 crore in Q1FY24. This significant growth underscores the bank's effective management of its core lending operations and its ability to capitalize on favorable interest rate dynamics.

Key Performance Metrics

Net Loans and Deposits Growth: Both net loans and deposits grew by 15% during the quarter. While this represents a slight deceleration from previous periods, it remains a robust performance amidst market volatility.

Net Interest Margin (NIM): Although there was a marginal decline in NIM to 4.25% from 4.26% in the previous quarter and 4.29% a year ago, the bank continues to maintain a strong profitability metric.

Asset Quality: The gross non-performing assets (NPA) ratio increased slightly to 2.02% from 1.92% in the previous quarter. Net NPAs also rose to 0.60% from 0.58% year-on-year. The bank has proactively addressed these challenges, with provisions rising to ₹1,050 crore from ₹992 crore a year ago.

Managing Director Mr. Sumant Kathpalia attributed the quarter’s performance to a strategic focus on collections and cautious disbursals, influenced by external factors such as elections and heatwaves impacting rural regions.

Positive Market Reaction

On July 26, IndusInd Bank’s shares closed 1.68% higher at ₹1,403.40 on the Bombay Stock Exchange (BSE), reflecting investor confidence in the bank’s strong performance and future prospects.

Mr. Prakash Hinduja, Chairman of Hinduja Group, Europe, remarked on the results: "Our first quarter performance demonstrates our commitment to delivering sustained growth and operational excellence. Despite the challenges faced, our strategic focus and resilient approach have enabled us to achieve notable improvements in our core income streams. We remain confident in our ability to navigate the evolving market landscape and continue our trajectory of growth

IndusInd Bank’s Q1FY25 results reinforce its position as a leading player in the banking and finance sector, demonstrating solid financial health and a strategic focus on maintaining growth and profitability.

About the Hinduja Group

The Hinduja Group is one of India’s premier diversified and transnational conglomerate. Employing about 200,000 employees, with a presence across 38 countries, it has a multi-billion-dollar revenue. The Group was founded over a hundred years ago by Shri PD Hinduja whose credo was "My duty (dharma) is to work so that I can give." The Group owns businesses in Mobility, Digital Technology, Banking and Financial Services, Media, Project Development, Lubricants and Specialty Chemicals, Energy, Real Estate, Trading, and Healthcare. The Group also supports charitable and philanthropic activities across the world through the Hinduja Foundation.

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