Indusind Bank

The stock price tumbled down badly after the private sector announced its Q2FY13. Like in Q1, it hled the distinction of being ‘first’ in Q2 also and looking at the share price fall one would have thought that Q2 was very bad but it is not bad. But for very marginal rise in NIM, like in Q1, rest all is well with the bank.  It posted a 30% (YoY) rise in net profit at Rs.250 crore, up 6% on QoQ.  NII was at Rs.510 crore, up 22% on a YoY and up 5.4% sequentially.  YoY, the NIM has improved from 3.22% to 3.25%. Core fee income was up 40% (YoY) at Rs.298 crore. The 18 bps drop in cost of funds also helped shore NIM. On the other hand, income from treasury fell 34% (YoY).

Its gross NPA was better by 6 bps at 1.03% but higher than the 0.97% in Q1FY13. Its Net NPA was at 0.29% against 0.31% (YoY). Capital Adequacy Ratio has come down further to 11.76% from 13.42% in current Q1 and from 14.32% (YoY). Its provision coverage ratio stands at 72.09%. In current Q1, advances had grown 31% but in Q2 it almost flat with a growth of 30.83%. Deposits grew 28% in Q1 and this in current Q2 grew only 24.49%. CASA was at 27.98% v/s 27.86% (QoQ). It opened 20 more branches in Q2, taking the tally to 441 and 61 new ATMs were added, taking the total to 796 ATMs at end of Q2FY13.