Top Indian Companies: IndusInd Bank Limited

IndusInd Bank Limited is a new-generation Indian bank headquartered in Mumbai. IndusInd Bank, which commenced operations in 1994, caters to the needs of both consumer and corporate customers. IndusInd Bank is the first among the new-generation private banks in India.

As on September 30, 2021, IndusInd Bank has 2,015 Branches/Banking Outlets and 2,886 ATMs spread across 760 geographical locations of the country.

The Bank also has representative offices in London, Dubai and Abu Dhabi. The Bank believes in driving its business through technology.

Banking Services

• Branch banking

• Consumer finance

• Corporate banking and finance

• Commercial and transaction banking

• Cash Management Services (CMS)

• Trade Services Utility (TSU)

• Depository operations

• Treasury operations

• Wealth management

Shareholding Pattern

The Shareholding Pattern page of IndusInd Bank Ltd. presents the Promoter's holding, FII's holding, DII's Holding, and Share holding by general public etc.

Holder's Name No of Shares % Share Holding

No of Shares 774548603 100%

Promoters 0 0%

Foreign Institutions 338849400 43.75%

Banks/Mutual Funds 85670489 11.06%

Central Govt 273 0%

Others 48352549 6.24%

General Public 62574183 8.08%

Financial Institutions 58104235 7.5%

Foreign Promoter 117516010 15.17%

GDR 63481464 8.2%

FY2023 Q4and Full Year Resultd

IndusInd Bank reported a 46% rise in net profit for the quarter ended March 2023 at Rs 2043 crore; The bank’s net profit in the same quarter a year ago was Rs 1,401 crore.

The bank board, in a meeting earlier today, decided dividend of Rs 14 per share for FY23, as compared to Rs 8.50 per share for FY 2021-22, subject to approval of the shareholders at the Annual General Meeting.

The private lender’s NIM improved to 4.28 per cent in the March quarter, as compared to 4.20 per cent, in the same quarter a year ago, and 4.27 per cent in the previous quarter.

Interest income climbed 27% to Rs 10020.71 crore in the last quarter against Rs 7859.89 crore for the March 2022 quarter.

However, gross NPAs rose to 5,826.27 crore in Q4 against Rs 5517.15 crore in the March 2022 quarter. NPA improved to 1.98 per cent from 2.27 per cent YoY, while its net NPA improved to 0.59 per cent from 0.64 per cent. The lender’s PCR came at 71 per cent, as at March 31, 2023.

Net NPAs rose to Rs 1714.96 crore in Q4 against Rs 1529.83 crore in the corresponding quarter of the previous fiscal. Debt to equity ratoio improved to 0.73 in Q4 against 0.76 in the fourth quarter of the previous fiscal.

The bank’s deposits grew by 15 per cent YoY to Rs 3,36,120 crore from Rs 2,93,349 crores.

The bank held contingency provision of Rs 1,900 crore as on March 31, 2023. During the quarter and year ended March 31,2023, the bank allotted 4,80,154 shares and 12,32,035 shares respectively, pursuant to the exercise of stock options by certain employees.

Meanwhile, shares of IndusInd Bank fell 2.23% to Rs 1092.1 after the Q4 earnings announcements. It closed at Rs 1115.90 in the previous session on BSE. The stock of the lender has lost 9.66% this year and risen 15% in the last one year. Total 2.55 lakh shares of the firm changed hands amounting to a turnover of Rs 28.48 crore on BSE. Market cap of the bank fell to Rs 85,437 crore.

Brokerage Outlook

Brokerage view – FY23 looks like a meaningfully better year from a growth and credit cost standpoint

Brokerage, Yes Securities maintain ‘Buy’ rating on IIB with a revised price target of Rs 1101:

Yes Securities value the bank at 1.7x FY23 P/BV for an FY22E/23E/24E RoE profile of 9.1/13.8/14.6%

ESG

The Bank reports environmental indicators such as electricity use, energy use, GHG emissions, water, paper waste and e-waste for 100% of its operations.

Environmental indicators such as water, paper waste and e-waste have been assured as part of the Integrated Report assurance.

IndusInd Bank is geared up to finance renewable energy projects in India as a means to contribute towards the national agenda of installing at least 9% of generation capacity through wind and solar energy.

The Bank has financed Renewable energy projects including solar, wind, biomass or biogas and small hydro projects, Renewable energy products (i.e. solar panels, turbines) and Renewable energy production/ transmission and distribution.