The Hindu Business Line : IndusInd Bank net up 131% on strong overall show

Mumbai, Oct. 14 IndusInd Bank reported a 131 per cent rise in net profit to Rs 78 crore in the second quarter of this fiscal, against Rs 34 crore in the corresponding year-ago period.

Growth in interest and fee incomes boosted profits, said Mr Romesh Sobti, Managing Director and Chief Executive Officer of the bank.

Sale of mutual funds, insurance products, forex sales and investment banking business boosted the bank’s non-interest income, said Mr Sobti.

Treasury income

In the first quarter, treasury income was a major contributor to fee income at Rs 86 crore. This quarter, it has come down to Rs 9 crore, he added.

“Net interest margins (NIM) improved on the back of reduction in cost of funds and higher yield on advances in the consumer finance loan book. We are targeting a NIM of over 3 per cent,” said Mr Sobti.

Cost of deposits came down to 7.2 per cent (7.9 per cent) and yield on advances was higher at 13.08 per cent (12.52 per cent).

Cost of funds came down due to lower fixed deposit costs and higher share of CASA (current account and savings account), Mr Sobti said.

Net NPAs came down due to accelerated provisioning and increased coverage. There were no restructured loans in this quarter, reflecting the healthy loan book, he said.

On interest rates, Mr Sobti said, there may not be any hardening of interest rates in the third quarter.

However, there may be marginal hardening in the fourth quarter, he added.

Of the total lending book of Rs 17,583 crore, around Rs 10,000 crore was corporate lending and the remaining was consumer finance loans.

Though the auto finance business had seen a revival, on a year-on-year basis, the growth was flat. However, the corporate loan book had grown at 60 per cent, Mr Sobti said.

The bank is in the process of rolling out 30 branches and opening 52 ATMs.

After the QIP (qualified institutional placement) issuance, there has been a dilution in the promoter’s stake. The stake, which was over 25 per cent, has come down to 22 per cent, Mr Sobti said.

The shares of IndusInd Bank ended at Rs 124.15 on the BSE on Wednesday, up 5.39 per cent from Monday’s close of Rs 117.8.

More Stories on : Financial Performance | Private Banks

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
India Post mulls foray into micro finance

IndusInd Bank net up 131% on strong overall show

HDFC Bank net grows 30% on ‘other income’

Nabard scheme for biz correspondents

Star Health plans to invest Rs 180 cr

ING Vysya Bank opens ATM

PNB prepaid gift cards to be out soon

Central Bank’s retail gold scheme

Call rate ends marginally lower

Rupee nearly breaches 46

24% growth in Q1 bank deposits