IndusInd Bank Q2 Result: There was a sharp decline in profit, know what percentage shock the company suffered…

IndusInd Bank Q2 Result: Private sector bank IndusInd Bank announced its results for the quarter ending September 2024. The bank reported a 39% decline in its net profit for the quarter to Rs 1,325 crore.

Net interest income increased by 5% to Rs 5,347 crore. The reported profit was below Street estimates of Rs 2,138 crore. It was Rs 2,181.47 crore in Q2FY24.

Net interest margin for the September quarter stood at 4.08%, 21 bps lower than 4.29% recorded in the same period last fiscal. This is 18 bps less quarter-on-quarter. Bank deposits crossed the Rs 4 lakh crore (or Rs 4 trillion) mark.

CASA deposits also increased to Rs 1,47,944 crore, which included Rs 52,606 crore of current account deposits and Rs 95,338 crore of savings account deposits. CASA deposits also increased to Rs 1,47,944 crore, which included Rs 52,606 crore of current account deposits and Rs 95,338 crore of savings account deposits.

As of September 30, 2024, CASA deposits comprised 35.87% of the total. The provision coverage ratio of the bank as of September 30, 2024 was 70%. Provisions and contingencies for the second quarter stood at Rs 1,820 crore as against Rs 974 crore in the same quarter last year. Other income stood at Rs 2,185 crore as against Rs 2,282 crore in the same quarter last year.

Commenting on the second quarter performance, the bank's Managing Director and CEO Sumant Kathpalia said, “Despite the ongoing turmoil in the global scenario, the Indian economy has continued to perform strongly.

However, the banking industry has seen continued competition for deposits and different trends in the growth of secured loans and asset quality compared to unsecured loans.

IndusInd Bank has formulated its strategy focusing on mobilizing retail deposits, maintaining a strong hold on secured loans, reducing unsecured loans and building provision buffers. (IndusInd Bank Q2 Result)