IndusInd Bank on Tuesday reported a 30% year-on-year increase in its net profit for the October-December quarter at Rs 581.02 crore on the back of non-interest income, which rose 29% YoY.
The bank’s net interest income (NII) – the difference between total interest earned and interest expended – grew 36% compared with the same quarter last year to R1,173.28 crore. This was around 7% higher than its NII in the previous quarter of the current fiscal. Non-interest income increased 29% on a year-on-year basis to Rs 839.00 crore, while fee income rose 30% to R725.90 crore.
IndusInd reported a healthy net interest margin (NIM) for the quarter under review at 3.91%, 24 basis points higher than in October-December last year and 3 basis points higher than in the quarter ended September.
On a year-on-year basis, the bank witnessed an improvement in asset quality, with gross non performing assets as a percentage of gross advances declining 23 basis points to 0.82%. On a sequential basis, gross NPA rose 5 bps. Net NPAs as a percentage of net advances stood at 0.33%, one basis point higher than in the same quarter last year and two bps higher than a quarter ago.
IndusInd Bank’s provisions for the December quarter nearly doubled on a YoY basis to Rs 177.08 crore compared with Rs 98.01 crore in October-December last year. In the previous quarter, the bank had reported provisions of Rs 158.09 crore.
“Globally as well as in the domestic market, growth continues to be weak. But against all odds, the bank has kept faith and shown sustained progress across all vectors. We will continue to keep our focus on our growth trajectory in these uncertain times,” Romesh Sobti, MD & CEO, said in a post-results statement.
Total advances for the nine-month period ending December stood at Rs 82,167 crore compared to Rs 63,847 crore in the same period last year, an increase of 29%.