Q1 2025 Indusind Bank Ltd Earnings Call Transcript
Key Points
- IndusInd Bank Ltd (BOM:532187) reported a healthy deposit growth of 15% year on year and 4% quarter on quarter.
- Loan growth was robust at 15% year on year, driven by 18% growth in retail loans and 13% growth in corporate loans.
- The bank's digital banking offering, INDIE, continues to see strong traction with 1.3 million customers.
- Gross NPA and net NPA were maintained at 2.02% and 0.60% respectively, with a healthy provision coverage ratio of 71%.
- Capital adequacy remains strong with CET1 at 16.15% and overall CRAR at 17.55%.
- The first quarter was challenging due to seasonal weakness, heatwaves, and election-related disruptions.
- Vehicle finance disbursements were lower due to subdued demand during the election phase and extreme heat.
- Collection efficiency in microfinance was impacted, with gross slippages from Bharat Financial at INR338 crore for the quarter.
- The cost to income ratio increased due to slower revenue growth from seasonally weak disbursements in vehicles and microfinance.
- There is some stress building up in the card business, with expectations of continued stress over the next two quarters.
Ladies and gentlemen, good day, and welcome to IndusInd Bank Limited Q1 FY25 earnings call. (Operator Instructions). Please note that this conference is being recorded.
I now hand the conference over to Mr. Sumant Kathpalia, MD and CEO, Indusind Bank Limited. Thank you, and over to you, sir.
Good evening and thank you for joining this call. Let me start with some macro commentary and then get into bank-specific details. Domestic economic activity, sustained momentum during quarter one after, delivering a robust GDP growth of 8.2% in financial year '24.
Manufacturing activities continued to gain traction on the back of strengthening domestic demand by services sector maintained its buoyancy. In banking system, liquidity conditions remain in deficit but improved marginally compared to the last quarter.
Looking ahead, recent budget had maintained continuity while laying down the future policy agenda for new development towards the goal
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