IndusInd Q1 Net Profit Up 41 Per Cent To Rs 25 Cr

Mumbai, July 29: | Updated: Jul 30 2003, 05:30am hrs
IndusInd Bank has posted a net profit of Rs 24.64 crore in the first quarter of 2003-04, recording an increase of 40.96 per cent, over the Rs 17.48 crore in the corresponding period of the fiscal 2002-03. The is attributed to a significant improvement in the net interest margin with a fall in the average cost of deposits.

The average cost of funds has declined to 6.81 per cent (8.30 per cent last year) this quarter with increasing proportion of low-cost deposits (savings and current account deposits), bank managing director Bhaskar Ghosh said at a press conference on Tuesday

The total income declined by 6.96 per cent in the quarter to Rs 223.20 crore (Rs 239.91 crore). The capital adequacy ratio declined to 15.47 per cent as on June 30, 2003 (17.12 per cent).

According to revised financial results, pursuant to the merger of IndusInd Enterprises & Finance Ltd (IEFL) with the bank, there has been a jump of 77.70 per cent in net profit to Rs 90.17 crore for the fiscal 2002-03 as against Rs 50.75 crore in the previous fiscal. The net profit before the merger was at Rs 71.35 crore.

During the fiscal 2002-03, in terms of the approval of the Reserve Bank of India (RBI), the bank utilised an amount of Rs 92.19 crore from revenue reserve/general reserve to carry out additional write off of non-performing assets below the line in the profit & loss account.

Pursuant to the merger, IndusInd Information Technology Ltd became a subsidiary of the bank and it is taking steps to dilute the banks equity holding in the subsidiary from the existing 80 per cent to 30 per cent before October 31, 2003, in terms of the RBI letter.