The net profit of IndusInd Bank for the quarter ended March 31, 2008 decreased by 32.47% to Rs 14.45 crore as against Rs 21.40 crore recorded for the corresponding period of the previous year. ?It has happened mainly due to higher NPA provisions (worth around Rs 19 crore) and also on account of higher depreciation (worth Rs 9 crore) against AFS investments,? said Ramesh Sobti, managing director, IndusInd Bank.
With effect from June 19, the bank has altered its lending as well as its deposit rates.
The prime lending rate has been raised by 50 basis points to 16.25% and deposit rates have been increased by 25-50 basis points.
Gross income for the quarter rose by 22.28% at Rs 591.04 crore as against corresponding period in the previous year, the net interest income increased by 12.92% at Rs 96.90 crore and net interest margin too improved by 0.23% to 1.64%.
For the fiscal ended March 31, 2008, IndusInd Bank?s net profit increased by 10% at Rs 75 crore as against Rs 68.22 crore profit for the year 2006-07. Gross income of the bank rose by 25% to Rs 2,178 crore. Capital adequacy ratio as on March 31, 2008 was 11.91%.
As already reported by FE on May 25, the bank re-confirmed its plan to go for a global depository receipts (GDR) offering in a bid to raise resources.
The size of the proposed issue is expected to be 10% of the bank?s current capital base that is presently worth Rs 320 crore. The proposed GDR issue during the current fiscal will be second one for the bank as the bank had raised $34 million through the instrument in March 2007. Addressing the media in Mumbai on Tuesday, Sobti said, ?We already have got shareholders? nod for the proposed GDR and I am going to announce its exact size on June 25.?
