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IndusInd Bank Net Up 26% At Rs 661 Crore On Higher Advances
Driven by improvement in almost every line of its business and spike in advances, private sector lender IndusInd Bank has reported a 26 per cent jump in net profit to Rs 661.38 crore for June quarter
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Driven by improvement in almost every line of its business and spike in advances, private sector lender IndusInd Bank on Monday (11 July) reported a 26 per cent jump in net profit to Rs 661.38 crore for June quarter.
"The rise in net profit was a result of better performance in every line of business," IndusInd Bank Managing Director and Chief Executive Romesh Sobti told reporters.
Net interest income grew 38 per cent to Rs 1,356 crore from Rs 980.66 crore while non-interest income rose 28 per cent to Rs 972.97 crore from Rs 761.61 crore, taking the total income to Rs 2,329 crore, up 34 per cent as against Rs 1,742 crore in the year-ago period.
Net interest margin improved to 3.97 per cent in the reporting period from 3.68 per cent a year-ago.
Advances rose 30 per cent to Rs 93,678 crore up from Rs 72,243 crore, whereas deposits grew at 31 per cent to Rs 1,01,768 crore from Rs 77,693 crore.
Sobti said the bank has been improving its NIM by 2-3 basis points every quarter for quite some time and the trend is likely to continue in future too.
There was some spike in net NPA, which grew marginally to 0.38 per cent at Rs 860.64 crore in the reporting period from 0.31 per cent in the year-ago period while gross NPA rose to Rs 355.5 crore or at 0.91 per cent. It was due to provisioning done by the bank as per the regulatory requirements.
"We made a provisioning of Rs 36 crore for the loan given to FCI alone during the reporting period," Sobti said.
While capital adequacy ratio stood at 15.42 per cent, its Casa ratio has marginally come down to 34.43 per cent from 34.68 per cent.
Talking about branch expansion plans, Sobti said the bank has already opened five branches in the reporting period taking its network to 1,004 and has plans to make it to 1,200 branches by the fiscal end.
The bank's non-vehicle finance ratio stood at 30:70 per cent and Sobti said the intention is to make it equal but did not set a time-frame for the same.
Its corporate loanbook comprises 56 per cent. "We plan to make our corporate versus retail loanbook in the ratio of 50:50 in days to come," he said. Among corporate, jems and jewellery sector at 5.93 per cent comprises the biggest chunk of the bank's loanbook and the bank has got an exposure of Rs 5,600 crore to the diamond sector alone, he said.
Sobti expects a 30 per cent in credit growth in current fiscal.
He also hinted that the bank may bring down its deposit rates. But didn't give any time-frame. Its deposit rates are in the range of 4-6 per cent per annum.
(PTI)