IndusInd PAT up 84%, looks at stake sale option

Mumbai, May 25 | Updated: May 26 2007, 05:40am hrs
IndusInd Bank's net profits for fiscal 2006-07 rose 84% at Rs 68 crore from the previous years Rs 37 crore.

The banks deposits increased from Rs 15,006.30 crore to Rs 17,644.80 crore, registering a growth rate of 17.58%, while advances were up 19.05% at Rs 11,084.20 crore from Rs 9310.46 crore. On the asset quality, both, gross non-performing assets(NPAs) and net NPAs increased to 3.07% and 2.47% respectively as on March 31, 2007 from 2.86% and 2.09%, a year ago. This is due to the slipping of a Rs 120 crore asset into sub-standard category from standard assets category, said Bhaskar Ghose, chief executive officer and managing director of the bank. Capital adequacy ratio of the bank rose to 12.54% from 10.54% during the year. The net interest margin (NIM) dropped from 1.91% to 1.37% because of the rising cost of deposits. The ratio of cost of deposits has increased from 5.87% to 6.73% for FY 2007.

On whether the bank was open to any strategic sale, Ghose said he was open to selling strategic stake to foreign banks, but the limit of 5% is posing hindrance. Foreign banks prefer to invest in new private sector banks, but they are not sure whether this cap of 5% will be relaxed to 20%, he added.