IndusInd Bank Net Up At 262 Crore

Mumbai, June 29 | Updated: Jul 1 2004, 04:48am hrs
IndusInd Bank has recorded a rise of 190.6 per cent in its net profit at Rs 262 crore for the fiscal ended March 31, 2004, compared to Rs 90.2 crore in the previous fiscal. The banks total income for the fiscal increased to Rs 1,331 crore as against Rs 1,000 crore in the preceding fiscal.

The results for the fiscal 2003-04 include the results of Ashok Leyland Finance Ltd, which was merged with the bank effective April 2003.

The board has recommended a dividend of 17.5 per cent (14 per cent in 2003-04) and a special dividend of five per cent on the occasion of the 10th anniversary of the bank, IndusInd bank managing director and CEO Bhaskar Ghose told a press conference on Tuesday.

For the quarter ended March, 31, 2004, the banks net profit and total income stood at Rs 48.7 crore (Rs 3.6 crore) and Rs 320.3 crore (Rs 290.1 crore), respectively. Operating profit was down to Rs 81.57 crore as against Rs 120.75 crore a year ago as the bank had higher treasury income in 2002-03, Mr Ghose said.

IndusInd bank joint managing director S Nagarajan said, The merger is extremely synergistic for the bank. The erstwhile ALFL will now have access to a stable source of low cost funds, while the bank gets into areas hitherto unexplored by retail banks.

Post-merger, Ashok Leyland Ltd, the promoter of erstwhile ALFL, has 15 per cent stake in the bank and the Reserve Bank of India (RBI) has asked the bank to reduce it to 10 per cent, the maximum a corporate can hold in a bank, in a years time.

The bank is planning to establish a capital market and a private banking subsidiary. The bank is also looking for more acquisitions of bank or non-bank finance company. The bank plans to raise Rs 70-75 crore of subordinated debts during the fiscal, he said.

Banks advances in 2003-04 grew to Rs 7,812 crore, registering an increase of 46 per cent while total deposits rose by 30 per cent to Rs 11,200 crore.

Gross non-performing and net non-performing assets in the fiscal were at 3.3 per cent and 2.72 per cent, respectively. The capital adequacy ratio of the merged entity was 12.75 per cent (12.13 per cent).

The merged entitys total asset base is over Rs 15,000 crore, augmented by Rs 4,200 crore through the merger of ALFL with the bank.