IndusInd Bank announces Financial Results for Quarter ended June 30, 2019

Posted on Monday, October 7th, 2019 | By IndusInd Bank

 Highlights Q1 FY 2019-20

• A quarter of steadfast performance
• Amalgamation of Bharat Financial Inclusion Limited (BFIL) completed pursuant to receipt
  of NCLT Order sanctioning the Scheme. Results for Q1 FY 20 includes the operating
  performance of BFIL business
•  CASA at 43 % , SA rose by 21 % Y-o-Y
•  Deposit growth up 26 % Y-o-Y
•  Credit growth up 28 % Y-o-Y
•  Net Interest Income up 34 % Y-o-Y
•  Operating profit and Net Profit up 36 % and 38 % Y-o-Y respectively
•  Capital Adequacy Ratio (CRAR) at 14.90 % (including eligible profit for Q1 FY-20 and promoter
  preference capital at 15.76%)
•  Return on Equity up at 18.45 %

Mumbai, July 12, 2019: The Board of Directors of IndusInd Bank Ltd. today approved and adopted its
Unaudited Financial Results for the first quarter ended June 30, 2019.

Performance Highlights at a Glance:

Key Ratios:

*(including eligible profit for Q1 FY-20 and promoter preference capital at 15.76%)

Performance highlights for the Quarter ended June 30, 2019:

On October 14, 2017, the Board of Directors of the Bank and BFIL, at their respective meetings,
approved a Composite Scheme of Arrangement (Scheme). Accounting effect of the scheme have been
given in the financial statements for the period ended June 30, 2019 under Accounting Standard 14 –
Accounting for Amalgamation, and hence the financial results for the period ended June 30, 2019 are
not comparable with the previous periods. Consequently, Net Profit for the period of the Bank is higher by Rs. 213.02 crores.

Pursuant to the Composite Scheme of Arrangement the Bank has allotted 8,96,17,781 equity shares of
Rs. 10 each fully paid-up, to the eligible equity shareholders of erstwhile BFIL in the ratio of 639 shares
of the Bank for every 1000 shares of BFIL. For quarter ended June 30, 2019 the same is shown under
Share Suspense and does not form part of Paid up Equity Share Capital.

Further on the same date , 1,57,70,985 Share Warrants were allotted to the promoters of the Bank, in accordance with the Scheme at Rs.1,709 per warrant, convertible into 1 (one) equity share each, which
price has been determined in accordance with the applicable SEBI regulations. In accordance with the
Scheme, the promoters have paid an amount equivalent to 25% of the aggregate warrant consideration for subscription to the share warrants.

• Net Interest Income (NII) for the quarter is Rs. 2,844 crores as against Rs. 2,122 crores in the
  corresponding quarter of the previous year, registering a robust growth of 34 %.
• Non-Interest income for the quarter is Rs. 1,663 crores as against Rs. 1,302 crores in the
  corresponding quarter of the previous year, a growth of 28 %.
•  Core fee income for the quarter is Rs. 1,402 crores as against Rs. 1,165 crores in the
  corresponding quarter of the previous year, marking a growth of 20 %.
•  Operating Profit for the quarter is Rs. 2,591 crores as against Rs. 1,911 crores in the
  corresponding quarter of the previous year, showing a growth of 36 %.
•  Net Profit for the quarter is Rs. 1,433 crores as against Rs. 1,036 crores in the corresponding
  quarter of the previous year, showing a growth of 38 %.
•  CASA (Current Accounts- Savings Accounts) Ratio stands at 43.04 % as on June 30, 2019 as
  against 43.42% as on June 30, 2018.
•  Total Advances as on June 30, 2019 is at Rs. 1,93,520 crores as compared to Rs. 1,50,675 crores
  on June 30, 2018, recording a growth of 28 %.
•  Total Deposits as on June 30, 2019 is at Rs. 2,00,586 crores as compared to Rs. 1,58,862 crores
  on June 30, 2018, up by 26%. Total Business is at Rs. 3,94,106 crores.
•  Savings accounts balance as on June 30, 2019 is at Rs. 57,652 crores, rose 21 % from Rs 47,711
  crores as on June 30,2018.
•  Net NPA as on June 30, 2019 is at 1.23 % as against 0.51 % on June 30, 2018.
•  Credit Cost stable at 16 bps in June 2019 as against 14 bps in June 2018.
•  Increase in network to 1701 Branches / banking outlet and 2605 ATMs as on June 30, 2019 as
  against 1410 Branches / banking outlet and 2285 ATMs as on June 30, 2018( this is excluding
  BFIL Network branches).

Commenting on the performance, Mr. Romesh Sobti, MD & CEO, IndusInd Bank said, “We have begun
the first quarter of this financial year on a positive note, as we have successfully completed the merger
with BFIL. We are delighted that the talent, capabilities and distribution of BFIL will enable the Bank to
play a more meaningful role in Rural India towards building financial inclusiveness and sustainability
across unbanked as well as under-banked locations of the country. During this quarter, the Bank has
witnessed healthy growth in its topline as well as in operating profits and will now push forward into the
subsequent quarters basis our strong belief in new opportunities, especially in rural India.”

About IndusInd Bank

IndusInd Bank, which commenced operations in 1994, caters to the needs of both consumer and corporate customers. Its technology platform supports multi-channel delivery capabilities. As on June 30, 2019, IndusInd Bank has 1701 branches/ banking outlet and 2605 ATMs spread across 740 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. It enjoys clearing bank status for both major stock exchanges – BSE and NSE – and major commodity exchanges in the country, including MCX, NCDEX and NMCE.

IndusInd Bank on April 01, 2013 was included in the NIFTY 50 benchmark index.

Ratings:

Domestic Ratings

• CRISIL AA + for Infra Bonds program
• CRISIL AA for Additional Tier I Bonds program
•  CRISIL A1+ for certificate of deposit program
•  IND AA+ for Senior bonds program by India Ratings and Research
•  IND AA for Additional Tier I Bonds program by India Ratings and Research
•  IND A1+ for Short Term Debt Instruments by India Ratings and Research

International Ratings

• Baa3 as Issuer, Bank Deposits and Senior Unsecured MTN ratings by Moody’s Investors Service
• P3 as Short Term Issuer Rating by Moody’s Investors Service

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