Private sector lender IndusInd Bank on Tuesday, reported a net profit of R447.19 crore for the quarter ended December, an increase of 29% y-o-y, on the back of a stable growth in both net interest income and non-interest income.
A healthy growth in advances of 22% y-o-y and an improvement in margins aided the rise in net interest income by 17.98 % y-o-y to R861.37 crore.
IndusInd Bank MD & CEO Romesh Sobti said credit has grown across sectors. “We were hoping to show higher growth in our credit this quarter of around 24%, but our vehicle finance book did not grow according to our expectation.”
Indusind Bank’s vehicle loans comprise 31% in the total advances. About 58% of the loan portfolio comes from corporates while the rest is from the retail segment.
Bank’s credit growth was healthy, and it also managed to keep bad loans in check. NPAs as a percentage of total advances stood at 1.05% on a gross basis and 0.32% on a net basis. In the quarter, the bank added R161-crore NPAs. The outstanding gross NPAs stood at Rs 673 crore as of December 31.
The net interest margin (NIM) rose 4 bps sequentially to 3.67% led by an ease in cost of funds.
The shares of IndusInd Bank closed at R822.5, down more than 1% over the previous closing on BSE.