IndusInd Bank has disclosed updates on its business performance for the quarter ending September 30, 2023. The bank's net advances reached Rs 3,14,928 crore, a 5% increase from the previous quarter, and a 21% year-on-year rise from Rs 2,60,129 crore recorded on September 30, 2022. According to InvestingPro data, the bank's market capitalization stands at 141.05M USD, and it's trading at a P/E ratio of 9.47.
The bank also reported an uptick in total deposits to Rs 3,59,819 crore as of September 30, 2023. This marks a 4% quarter-on-quarter increase from Rs 3,47,347 crore as of June 30, 2023 and a significant 14% year-on-year growth from Rs 3,15,921 crore as of September 30, 2022. This positive performance is in line with the InvestingPro Tips that highlight IndusInd Bank as a prominent player in the Banks industry with stockholders receiving high returns on book equity.
Despite the positive growth in deposits, the CASA ratio faced a decline in this period. As of September 30, 2023, it stood at 39.4%, compared to the higher ratios of 39.9% as of June 30, 2023 and 42.4% as of September 30, 2022.
In terms of specific deposit categories, retail deposits and deposits from small business customers grew to Rs 1,57,178 crore as of September 30, 2023. This figure is higher than the Rs 1,50,691 crore reported as of June 30, 2023.
Brokerage firm Motilal Oswal maintains a buy rating on the shares of IndusInd Bank. In a note, the firm indicated that the bank continues to report steady loan growth and expects this trend to continue. It also noted the bank's focus on augmenting retail deposits as a positive sign. This aligns with the InvestingPro Tips which suggest that the bank has consistently increased its earnings per share over the years.
In the quarter-ended June, the lender reported a 32.5% rise in net profit at Rs 2,123.6 crore. Net Interest Income (NII) rose by 18% in comparison to the first quarter of FY23, with the net interest margin (NIM) for the first quarter of FY24 standing at 4.29%.
In addition to its financial performance, IndusInd Bank announced last month the launch of the 'Virtual Commercial Card' in collaboration with Visa (NYSE:V). The virtual card aims to redefine cross-border transactions for corporates and travel agents by providing additional security layers for international expenses control.
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