Introduction:
IndusInd Bank has mentioned a strong 13% year-on-12 months (YoY) growth in its net advances, totaling ₹three,67,166 crore as of 31 December 2024. This marks a large upward push as compared to ₹three,27,057 crore as of 31 December 2023. On a sequential basis, the non-public zone lender’s internet advances grew three% from ₹3,fifty seven,159 crore recorded on the quit of September 2024.
Deposit Growth Stagnates with Slight Dip in CASA Ratio
While the bank showed solid growth in net advances, its deposits saw a more modest performance. Deposits increased by 11% YoY but saw a slight decline of 1% on a quarter-on-quarter (QoQ) basis, amounting to ₹4,09,570 crore as of 31 December 2024. Notably, the bank’s CASA (current account and savings account) ratio dropped to 34.9% from 38.5% during the same period last year.
Retail Deposits Exhibit Steady Growth
The retail deposit segment, which includes deposits from small business customers, continues to perform well. This category grew 3.75% YoY to ₹1,88,731 crore by December 2024. This indicates a consistent flow of funds from individual and small business clients, helping to support the bank’s overall growth trajectory.
IndusInd Bank’s Q3 FY25 Performance: Strong Growth in Net Advances and Strategic Expansion:
Expanding Branch and ATM Network
IndusInd Bank has been focusing on expanding its reach and improving accessibility for customers. As of 30 September 2024, the bank operated 3,040 branches and banking outlets, up from 2,631 in the previous year.
The ATM network also saw a rise, reaching 3,011 ATMs from 2,903 a year earlier. Additionally, the bank’s client base expanded to approximately 41 million, signaling increasing customer trust and market penetration.
Profit Decline in Q2 FY25, But Total Income Rises
In Q2 FY25, IndusInd Bank faced a challenging period with its standalone net profit falling by 39.24% YoY to ₹1,325.45 crore from ₹2,181.47 crore in Q2 FY24. Despite the profit drop, the bank’s total income showed a positive trend, rising 9.91% YoY to ₹14,870.18 crore for the quarter ended September 2024.
Stock Market Performance
IndusInd Bank’s shares closed at ₹998.10 on 3 January 2025, marking a modest increase of 0.53% from the previous trading session. This signals continued investor confidence despite the mixed financial performance in the recent quarter.
Conclusion:
The strong growth in net advances, particularly in the retail and small business segments, along with a healthy increase in branch and ATM numbers, highlights IndusInd Bank’s ability to expand its market presence.
While profit growth remains a challenge, with a notable decline in Q2 FY25, the steady income growth and deposit traction indicate that the bank remains well-positioned to recover in the coming quarters. Investors will be keenly watching how IndusInd Bank manages its cost efficiency and improves profitability while maintaining its growth momentum.
FAQ:
1. What was the percentage growth in IndusInd Bank’s net advances for Q3 FY25?
IndusInd Bank reported a 13% year-on-year (YoY) increase in its net advances, reaching ₹3,67,166 crore as of 31 December 2024, compared to ₹3,27,057 crore a year earlier.
2. How did IndusInd Bank’s net advances perform sequentially in Q3 FY25?
On a sequential basis, IndusInd Bank’s net advances grew by 3%, from ₹3,57,159 crore as of 30 September 2024 to ₹3,67,166 crore as of 31 December 2024.
3. What is the current status of IndusInd Bank’s deposits?
IndusInd Bank’s deposits stood at ₹4,09,570 crore as of December 2024, reflecting an 11% YoY increase. However, deposits showed a slight decline of 1% compared to the previous quarter.
4. How did IndusInd Bank’s CASA ratio perform in Q3 FY25?
IndusInd Bank’s CASA (current and savings accounts) ratio decreased to 34.9% as of 31 December 2024, compared to 38.5% as of the same period last year.
5. What was the growth in retail deposits and deposits from small business customers?
Retail deposits and deposits from small business customers grew by 3.75% YoY to ₹1,88,731 crore as of 31 December 2024, indicating steady growth in these key segments.
6. How is IndusInd Bank expanding its reach in the market?
IndusInd Bank has been expanding its branch and ATM network. As of 30 September 2024, the bank had 3,040 branches and 3,011 ATMs, up from 2,631 branches and 2,903 ATMs a year earlier.
7. What was the impact on IndusInd Bank’s net profit in Q2 FY25?
IndusInd Bank reported a 39.24% decline in standalone net profit in Q2 FY25, which stood at ₹1,325.45 crore, down from ₹2,181.47 crore in Q2 FY24. This was despite a 9.91% increase in total income during the same period.
8. How did IndusInd Bank’s stock perform on 3 January 2025?
IndusInd Bank’s stock closed 0.53% higher at ₹998.10 on 3 January 2025, reflecting investor confidence despite the mixed results in the bank’s latest financial report.
9. What are the key factors driving the growth in net advances for IndusInd Bank?
The growth in net advances can be attributed to strong performance in retail banking and small business loans. IndusInd Bank’s expanding branch and ATM network, as well as a growing customer base, are also key drivers of this growth.
10. What should investors expect from IndusInd Bank in the upcoming quarters?
Investors will be watching how IndusInd Bank navigates challenges such as declining profit and a reduced CASA ratio. However, the strong growth in advances, income, and retail deposits suggests the bank is on a solid growth path, and there could be potential for recovery in profitability in future quarters.
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