IndusInd Bank on Wednesday reported a 10% year-on-year rise in its net advances for the October-December quarter to 2.28 lakh crore. On a sequential basis, the lender’s loan book grew 3%, according to provisional data reported by the bank. On liabilities side, the deposit book grew at a faster rate of 19% on a yearly basis to2.84 lakh crore as on December end. The bank’s low-cost current account and savings account (CASA) ratio improved marginally to 42.2% as on December 31 from 42.1% as on September-end.
“Retail deposits and deposits from small business customers amounted to 1,13,615 crore as of December 31, 2021, compared to1,11,754 crore as of September 30, 2021,” the bank said.
The rise in advances and deposits is broadly in-line with analysts’ view. According to Motilal Oswal estimates, IndusInd Bank will likely report 19.1% and 11% year-on-year rise in its deposits and advances, respectively, for the December quarter. The brokerage said IndusInd Bank’s asset quality will remain under watch due to higher stress in microfinance loans. As on September end, the lender’s total microfinance loans stood at 28,115 crore and formed 13% of the overall loan book. Addressing analysts at a post earnings conference in October, MD & CEO Sumant Kathpalia had asserted that though credit demand is coming back in the rural economy, the bank had been cautious on new customer growth and acquiring them only from well performing districts. “We remain vigilant on ensuring collection efficiency maintains an upward trajectory,” he said.
In a separate development, shares of Bajaj Finance ended 4.4% higher at7,668.55 on the BSE after the non-bank lender late Tuesday reported healthy growth in its assets under management (AUMs) for the quarter ended December and gave positive commentary on its asset quality position. As per its stock exchange notice, AUMs rose to 1.81 lakh crore from1.43 lakh crore a year ago.
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