IndusInd Bank has reported a significant increase in its net profit for the fourth quarter ended March 31, 2023. The bank’s net profit rose by 46% to Rs 2,043 crore, as compared to Rs 1,401 crore in the same quarter last year. The rise in net profit was attributed to higher interest income and lower provisions. The bank’s net interest income during the quarter was Rs 4,669 crore, a rise of 17% from Rs 3,985 crore in Q4FY22. The net interest margin also improved from 4.2% in Q4FY22 to 4.28% in Q4FY23. Provisions and contingencies were at Rs 1,030 crore, a decline of 30% from Rs 1,461 crore in Q4FY22. The bank stated that the total loan-related provisions were at Rs 7,324 crore.

The bank also reported stable loan book quality, with gross NPA at 1.98% of gross advances as on March 31, 2023, compared to 2.06% as on December 31, 2022. Net NPA was at 0.59% of net advances, down from 0.62% as on December 31, 2022. The bank’s capital adequacy stood at 17.86% as on March 31, 2023.

According to Sumant Kathpalia, MD and CEO, IndusInd Bank, the loan growth accelerated to 21% YoY, and the retail deposit growth was at 19% YoY. The bank’s quarterly net profit crossed the Rs 2,000 crore mark for the first time, and the full-year profit was at Rs 7,443 crore, up 55% YoY. The net worth of the bank is in excess of Rs 50,000 crore.

The bank’s board has recommended a dividend of Rs 14 per share for 2022-23, compared with Rs 8.5 per share for 2021-22.

In other banking news, Tamilnad Mercantile Bank reported a net profit of Rs 253 crore for the fourth quarter ended March 2023, a rise of 11.45% from the same period last year. The bank’s profits were helped by a decline in bad loans. Bank of Maharashtra also reported a significant jump in its net profit for the March quarter, with a more than two-fold increase to Rs 840 crore, helped by a decline in bad loans and a rise in interest income.