Q4FY13 Results: IndusInd Keeps Up With Other Private Banks
Vinaya Patil / 18 Apr 2013
While the bank has performed well on the NIM and operational front for the March 2013 quarter, while also considerably maintaining its NPAs.
Keeping up with the momentum of medium scale private sector banks like Yes Bank and DCB Bank, IndusInd Bank too has put in strong numbers for the March 2013 quarter results.
For the March 2013 quarter, the bank has posted an operating profit of Rs 543.45 crore as against Rs 472.16 crore in December 2012 quarter and Rs 379.09 crore in March 2012. On a full year basis (FY13) also, the operating profit has increased considerably to Rs 1839.46 crore as against Rs 1373.03 crore in FY12.
The bank has increased the provisioning amount in the March 2013 quarter to Rs 81.85 crore as against Rs 78.68 crore in the December 2012 quarter and just Rs 45.99 crore in March 2012.
Despite the higher provisioning, the bank’s bottomline has increased to Rs 307.40 crore as against Rs 267.27 crore in December 2012 and Rs 223.38 crore in March 2012. The board has announced a dividend of Rs 3 per share.
As regards the segmental performance, the good performance was mainly aided by corporate banking segment and retail segment. While corporate banking added Rs 159.03 crore (Rs 143.20 crore in December 2012) to the operating profit, Treasury operations added Rs 53.39 crore (Rs 29.08 crore). Retail Banking, which is the largest segment for the bank, added Rs 351.43 crore (Rs 316.02 crore in December 2012).
On the operational front, there has been a good business growth. While advances as on have increased to Rs 44,320.61 crore from Rs 35,063.95 crore in March 2012, the deposits also witnessed an increase and stood at Rs 54,116.72 core and Rs 42,361.55 crore respectively.
Despite the strong business growth, it has managed to maintain its asset quality as the net NPAs stood at Rs 0.31 per cent. Though the NPAs have increased marginally, we feel it is still lower as compared to its peers.
Further, there has been an improvement in the net interest margins. For the March 2013 quarter, the NIM stood at Rs 3.70% as against 3.46% in December 2012 and 3.29% in March 2012. The bank is adequately capitalised with a CAR of 15.36%.
On the expansion front, the branch network increased significantly to 500 branches in FY13 as against 400 branches in FY12. The bank’s ATMs in FY13 increased to 882 from 692 ATMs the previous year. Considering the strong performance of the bank, we recommend a ‘buy’ on the counter.
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