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INDUSIND BANK 2024-25 Annual Report Analysis

Mon, 11 Aug

INDUSIND BANK has announced its results for the year ended March 2025. Let us have a look at the detailed performance review of the bank during the year 2024-25.

INDUSIND BANK Income Statement Analysis

• Interest income during the year rose 6.4% on a year-on-year (YoY) basis.
• Interest expenses were up by 17.9% YoY during the same period.
• Operating expenses increased by 13.5% YoY during the year.
• The bank's net interest income (NII) decreased by 7.7% YoY during the fiscal. Consequently, net interest margins (NIM) witnessed a decline and stood at 4.1% in FY25 as against 4.6% in FY24.
• Other income declined by 18.2% YoY during the year.
• Net profit for the year declined by 71.3% YoY.
• Net profit margins during the year declined to 5.3% in FY25 from 19.6% in FY24.

INDUSIND BANK Income Statement – 2024-25

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*	% Change
Interest Income	Rs m	457,482	486,677	6.4%
Other Income	Rs m	93,958	76,904	-18.2%
Interest Expense	Rs m	251,323	296,364	17.9%
Net Interest Income	Rs m	206,159	190,313	-7.7%
Operating Expense	Rs m	141,476	160,603	13.5%
Pre-provision Operating Profit	Rs m	158,641	106,614	-32.8%
Provisions & Contingencies	Rs m	68,871	80,860	17.4%
Profit before tax	Rs m	119,792	35,258	-70.6%
Tax	Rs m	30,022	9,503	-68.3%
Profit after tax	Rs m	89,773	25,755	-71.3%
Minority Interest	Rs m	0	0	0.0%
Net Interest Margin	%	4.6	4.1
Net profit margin	%	19.6	5.3

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INDUSIND BANK Balance Sheet Analysis

• The bank's deposits during FY25 stood at Rs 4,108.6 bn as compared to Rs 3,845.9 bn in FY24, thereby witnessing an increase of 6.8%.
• Advances for the year stood at Rs 3,450.2 bn as compared to Rs 3,433.0 bn during FY24, a rise of 0.5%.
• Cost of deposits for INDUSIND BANK rose 10.1% and stood at 6.2%, while yield on advances rose to 11.5%.
• The lender's investments rose to Rs 1,144.6 bn during the year from Rs 1,064.9 bn in FY24.
• Borrowing stood at Rs 537.0 bn, a growth of 12.8% as compared to previous year.
• Overall, the total assets and liabilities for FY25 stood at Rs 5,541.1 bn as against Rs 5,150.9 bn during FY24, thereby witnessing a rise of 7.6%.

INDUSIND BANK Balance Sheet – as on March 2025

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*	% Change
Networth	Rs m	631,040	646,928	2.5%
Advances	Rs m	3,432,983	3,450,186	0.5%
Deposits	Rs m	3,845,857	4,108,623	6.8%
Yield on advances	%	11.1	11.5
Cost of Deposits	%	5.6	6.2
Investments	Rs m	1,064,865	1,144,567	7.5%
Borrowings	Rs m	476,114	537,036	12.8%
Total Assets	Rs m	5,150,940	5,541,071	7.6%

Current Valuations for INDUSIND BANK

• The trailing twelve-month earnings per share (EPS) of the bank stands at Rs 33.1, an improvement from the EPS of Rs 115.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 786.2, stands at 33.0 times its trailing twelve months earnings.
• The price to adjusted book value (P/ABV) ratio at current price levels stands at 0.9 times, while the price to income ratio stands at 1.7 times.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*
Income per share (Unadj.)	Rs	587.8	624.7
Earnings per share (Unadj.)	Rs	115.3	33.1
Diluted earnings per share	Rs	115.2	33.1
Avg P/E ratio	Rs	11.7	33.0
Avg P/ABV ratio	Rs	1.7	0.9
Avg Market Cap	Rs	1,052,055	849,715
Dividends per share (Unadj.)	Rs	16.50	0.00

Ratio Analysis for INDUSIND BANK

• Efficiency Ratios

  Credit/Deposit Ratio: The bank's credit/deposit ratio deteriorated and stood at 84.0x during FY25, from 89.3x during FY24. The credit/deposit ratio tells us how much money a bank has raised in the form of deposits and has deployed as loans.

  Debt to Equity Ratio: The bank's debt to equity ratio increased and stood at 7.18x during FY25, from 6.85x during FY24. The debt to equity ratio of a bank tells us how much debt a bank uses relative to its equity.

• Liquidity Ratios

  Capital Adequacy Ratio (CAR): INDUSIND BANK's capital adequacy ratio (CAR) was at 16.2% as on 31 March 2025 as compared to 17.2% a year ago. This ratio helps measure the financial strength of the bank or any finance company to meet their obligations using their assets and capital.

  A bank that has a good CAR has enough capital to absorb potential losses. Thus, it has less risk of becoming insolvent and losing depositor's money.

  Provision Coverage Ratio (PCR): Apart from CAR, you also need to take a look at the bank's PCR and LCR ratios. Provisioning coverage ratio (PCR) is the percentage of funds that a bank sets aside for covering losses due to bad debts.

  So a high PCR ratio means asset quality issues are under control and the bank is not vulnerable.

  Liquidity Coverage Ratio (LCR): The LCR is designed to ensure that banks hold a sufficient reserve of high-quality liquid assets to allow them to survive a period of significant liquidity stress lasting 30 calendar days.

• Profitability Ratios

  Return on Equity (ROE): The return on equity (ROE) ratio for the bank deteriorated and stood at 4.0% during FY25, from 14.2% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

  Return on Assets (ROA): The return on asset (ROA) ratio of the bank deteriorated and stood at 0.46% during FY25, from 1.74% during FY24. The ROA measures how efficiently the company uses its assets to generate earnings.

  Return on Capital Employed (ROCE): The ROCE for the bank deteriorated and stood at 6.65% during FY25, from 14.34% during FY24. The ROCE measures the ability of a bank to generate profits from its total capital (shareholder capital plus debt capital) employed in the bank.

• NPA Ratios

  Gross NPA Ratio: The gross NPA ratio is the ratio of a bank's gross NPAs to gross advances. INDUSIND BANK's gross NPA ratio stood at 3.1% as of 31 March 2025 compared to 1.9% in the same period a year ago.

  A high gross NPA ratio is a bad thing as it indicates how much of a bank's loans are in danger of not being repaid.

  Net NPA Ratio: In simple language, net NPAs are simply the total non-performing assets minus the provision left aside. It gives you the exact value of NPAs after the bank has made provisions.

  The net NPA ratio of INDUSIND BANK was 1.0% in financial year 2025. This compared with 0.6% a year ago.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*
Credit/Deposit Ratio	x	89.3	84.0
Debt to Equity Ratio	x	6.8	7.2
Loans / Deposits	x	0.1	0.1
Capital Adequacy Ratio	%	17.2	16.2
Return on Equity	%	14.2	4.0
Return on Assets	%	1.7	0.5
Return on Capital Employed	%	14.3	6.7
% of Gross NPAs	%	1.9	3.1
% of Net NPAs	%	0.6	1.0
Yield on Advances	x	11.1	11.5
Yield on Investments	x	6.2	7.2

To see how INDUSIND BANK has performed over the last 5 years, please visit here.

INDUSIND BANK Share Price Performance

Over the last one year, INDUSIND BANK share price has moved down from Rs 1,350.2 to Rs 786.2, registering a loss of Rs 564.0 or around 41.8%.

Meanwhile, the S&P BSE BANKEX is trading at 61,554.1 (up 0.7%). Over the last one year it has moved up from 57,458.7 to 61,554.1, registering a gain of 4,095.5 points (up 7.1%).

Overall, the S&P BSE SENSEX is up 0.9% over the year.

(To know more, you can check out historical annual results for INDUSIND BANK here and quarterly results for INDUSIND BANK here)