IndusInd Bank reported a significant year-on-year (YoY) growth of 13% in its net advances, which reached ₹3,56,980 crore as of September 30, 2024. This growth demonstrates the bank's steady expansion and robust lending practices, up from ₹3,15,454 crore in the same period last year.
For investors looking to buy shares online, this news signals the bank’s continued financial strength, making it an attractive prospect.
Sequential growth in advances
On a quarter-on-quarter basis, IndusInd Bank's net advances also grew by 3%, climbing from ₹3,47,898 crore at the end of June 2024 to ₹3,56,980 crore by the end of September 2024. This upward trend showcases consistent growth, reflecting the bank's ability to expand its lending portfolio and cater to a wide range of customers. Investors who are looking to buy shares online may find this sustained growth a positive indicator of the bank’s future performance.
Strong deposit growth
IndusInd Bank reported a notable 15% increase in deposits, rising from ₹3,59,786 crore in September 2023 to ₹4,12,704 crore by September 2024. Sequentially, deposits also saw a rise of 4%, reaching ₹3,98,607 crore in the second quarter of FY25.
Despite the rise in deposits, the bank’s CASA (Current Account Savings Account) ratio dipped to 35.9% in September 2024, down from 39.4% in the previous year. For those looking to buy shares online, the bank’s strong deposit base offers a solid foundation, although the decline in CASA may be worth monitoring.
Growth in retail deposits and small business customers
Retail deposits and deposits from small business customers increased by 4.4%, totalling ₹1,81,911 crore as of September 30, 2024, compared to ₹1,74,236 crore as of June 2024. This growth reflects the bank’s strong focus on expanding its customer base among individual and small business clients.
If you're planning to buy shares online, this steady increase in customer deposits shows the bank’s ability to attract and retain retail customers, boosting investor confidence.
Expanding distribution network
IndusInd Bank continues to expand its distribution network, serving both consumer and corporate customers across India. As of December 31, 2023, the bank operated 2,728 branches and banking outlets, as well as 2,939 onsite and offsite ATMs. This is a marked increase from the 2,384 branches and 2,894 ATMs it operated at the same time in 2022.
The growing network, combined with the bank’s 38 million-strong client base, enhances its accessibility and customer reach, which may appeal to those looking to buy shares online and capitalise on its expanding footprint.
Q1 FY25 financial performance
In the first quarter of FY25, IndusInd Bank reported a consolidated net profit increase of 2.2%, amounting to ₹2,170.79 crore. This was on the back of a 15.8% jump in total income, which reached ₹14,988.38 crore in Q1 FY25 compared to Q1 FY24.
Although the profit growth was moderate, the substantial rise in income indicates strong operational performance. Investors seeking to buy shares online may view this as a sign of healthy revenue generation, even if profit growth was modest.
Stock performance and investor outlook
Despite the bank’s robust financial performance, the stock price saw a slight dip, shedding 0.02% to ₹1,382.65 on the BSE. This minor fluctuation may not be alarming for long-term investors but could present an entry point for those looking to buy shares online. With its consistent growth in advances, deposits, and income, IndusInd Bank remains a solid choice for those seeking investment opportunities in the banking sector.
By continuing to grow its lending and deposit base while expanding its physical presence, IndusInd Bank demonstrates its resilience and growth potential. Investors interested in the banking sector should consider this performance as a positive signal when deciding to buy shares online.
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