{"id":134989,"date":"2022-10-20T09:10:36","date_gmt":"2022-10-20T13:10:36","guid":{"rendered":"https:\/\/44.250.171.167\/?p=134989"},"modified":"2023-04-25T08:31:17","modified_gmt":"2023-04-25T12:31:17","slug":"story-behind-indusind-banks-q2fy23-results","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/story-behind-indusind-banks-q2fy23-results\/","title":{"rendered":"Story behind IndusInd Bank’s Q2FY23 Results"},"content":{"rendered":"\n

When we look at the highlighted section of IndusInd Bank Ltd’s<\/a> income statment, it is evident that the drastic increase in profitability stems from the reduction of Provisions & Contingencies amount. That would explain as to why the YoY growth for Operating Profit is 10% whereas the YoY growth for Profit Before Tax is 59%.<\/p>\n\n\n\n

Drastic Decrease in Provision and Contingencies:<\/strong><\/p>\n\n\n\n

\u20b9 in Cr.<\/strong><\/td>Q2FY23<\/strong><\/td>Q2FY22<\/strong><\/td>YoY (%)<\/strong><\/td><\/tr>
Net Interest Income<\/td>4,302<\/td>3,658<\/td>18%<\/td><\/tr>
Other Income<\/td>2,011<\/td>1,841<\/td>9%<\/td><\/tr>
Total Income<\/td>6,313<\/td>5,500<\/td>15%<\/td><\/tr>
Operating Expenses<\/td>2,769<\/td>2,277<\/td>22%<\/td><\/tr>
Operating Profit<\/strong><\/td>3,544<\/strong><\/td>3,223<\/strong><\/td>10%<\/strong><\/td><\/tr>
Provisions & Contingencies <\/strong><\/td>1,141<\/strong><\/td>1,707<\/strong><\/td>(33%)<\/strong><\/td><\/tr>
Profit Before Tax<\/strong><\/td>2,403<\/strong><\/td>1,516<\/strong><\/td>59%<\/strong><\/td><\/tr>
Provision for Tax<\/td>598<\/td>369<\/td>62%<\/td><\/tr>
Profit After Tax<\/td>1,805<\/td>1,147<\/td>57%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
Key Ratios:<\/strong><\/h6>\n\n\n\n
\"\"\/<\/a><\/figure><\/div>\n\n\n\n

A high share of CASA Deposits proved that sources of funds are healthier and stable compared to other sources of deposits. As interest charged on CASA Deposits are lower than other forms of deposits. So, they contribute to higher Net Interest Margin.<\/p>\n\n\n\n

\"\"\/<\/a><\/figure><\/div>\n\n\n\n

The higher net interest margins results in IndusInd Bank Ltd. to observe one of the highest operating margins in the Industry.<\/p>\n\n\n\n

\"\"\/<\/a><\/figure><\/div>\n\n\n\n
Asset Quality:<\/strong><\/h6>\n\n\n\n

Asset Quality of IndusInd Bank Ltd. for this quarter can be assessed through the movement in the Bank\u2019s non performing assets. It is evident through the below diagram that there is positive movement on non performing assets. <\/p>\n\n\n\n

\"\"\/<\/a><\/figure><\/div>\n\n\n\n

On a QoQ scale, there has been a decrease from both Gross Non Performing Assets and Net Non Performing Assets.<\/p>\n","protected":false},"excerpt":{"rendered":"

When we look at the highlighted section of IndusInd Bank Ltd’s income statment, it is evident that the drastic increase in profitability stems from the reduction of Provisions & Contingencies amount. That would explain as to why the YoY growth for Operating Profit is 10% whereas the YoY growth for Profit Before Tax is 59%. […]<\/p>\n","protected":false},"author":1885,"featured_media":134992,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1,6352],"tags":[151],"class_list":["post-134989","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance-stocks","category-research-summary","tag-banking"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2022\/10\/iStock-1215972682.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":177483,"url":"https:\/\/alphastreet.com\/india\/indusind-bank-q3-fy26-earnings-profit-plunges-margins-under-pressure\/","url_meta":{"origin":134989,"position":0},"title":"IndusInd Bank Q3 FY26 Earnings: Profit Plunges, Margins Under Pressure","author":"Staff Correspondent","date":"January 23, 2026","format":false,"excerpt":"Quarterly Financial Summary IndusInd Bank (NSE: INDUSINDBK) reported a consolidated net profit of \u20b9128 crore for the quarter ended 31 December 2025. This represents a 91% decline compared to \u20b91,402 crore in the corresponding quarter of the previous year. On a sequential basis, the bank returned to profit following a\u2026","rel":"","context":"In "LATEST"","block_context":{"text":"LATEST","link":"https:\/\/alphastreet.com\/india\/category\/latest\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":134938,"url":"https:\/\/alphastreet.com\/india\/indusind-bank-ltd-q2fy23-57-growth-in-profits\/","url_meta":{"origin":134989,"position":1},"title":"IndusInd Bank Ltd. 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