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Below is quote on IndusInd Bank Q1FY22 results by Mr. Jyoti Roy - DVP- Equity Strategist, Angel Broking Ltd   

IndusInd Bank reported a 8.0% yoy increase in Net interest income to Rs. 3,564 crore while NIMs for the quarter contracted by 22bps yoy to 4.06% due to interest reversals. Other income for the quarter was up by 18% yoy at Rs. 1788 crore. Total income was up by 11% yoy to Rs. 5,352 crore while operating expenses were up by 14% yoy to Rs. 2167 crore. Pre provisioning profits for the quarter was up by 9% yoy to Rs. 3,185 crore while provisions for the quarter were down by 18% yoy and 1% qoq to Rs. 1,844 crore. As a result the bank reported a profit of Rs. 1016 crore up by 99% yoy and 10% qoq.

NII growth was driven by advances growth of 6% yoy though they were down by 1% qoq, while deposits registered a growth of 26% yoy. Asset quality deteriorated marginally with GNPA and NNPA increasing to 2.88% and 0.88% of advances as compared to 2.67% and 0.69% of advances in Q4FY21. Overall IndusInd posted a good set of numbers in the backdrop of the second Covid wave especially on the asset quality front which held up relatively well. We expect that the worst of the Covid impact is over for the bank and we expect the bank to start reporting sequential growth in advances and NIIs from Q2FY22 along with lower credit costs thus driving earnings growth. Post the Q4FY22 results we have a positive outlook on the bank.

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