IndusInd Bank net up 30%, asset quality improves

By: | Published: October 10, 2015 12:10 AM

IndusInd Bank on Friday reported a 30% rise in its net profit at Rs 560.04 crore for the second quarter of fiscal year 2016 on a year-on-year basis.

IndusInd Bank on Friday reported a 30% rise in its net profit at Rs 560.04 crore for the second quarter of fiscal year 2016 on a year-on-year basis.

Net Interest Income (NII) —the difference between interest earned and interest expended—registered a growth of 31.35% at Rs 1,094.28 crore on a y-o-y basis, while it also grew 11.59% compared to the previous quarter. Non-interest income rose 31.92% at Rs 783.54 crore compared to the second quarter of FY15.

Net interest margins (NIM) rose by a considerable 25 basis points to 3.88% in the second quarter this year on a y-o-y basis while it saw a growth of 20 bps on a sequential basis. IndusInd Bank also registered a 38.89% y-o-y growth in its operating profits at Rs 1,006.53 crore.

Asset quality improved with gross non-performing assets as a percentage of gross advances seeing a fall of 31 basis points to 0.77% in the second quarter compared to the same period last year.

On a sequential basis, gross NPAs fell by two bps.

Net NPAs as a percentage of net advances stood at 0.31%, which is two basis points lower than the figure reported last year while it remained consistent on a sequential basis.

The bank’s provisions and contingencies have more than doubled to Rs 158.09 crore in the second quarter compared to Rs 73.20 crore in the same period last year. In the first quarter, the bank had reported provisions and contingencies worth Rs 123.33 crore.

indusind

Romesh Sobti, managing director and CEO, IndusInd Bank, attributed this increase in provisions to the rise in standard assets provisioning.

“Because there has been a jump of almost Rs 5,500 crore in the standard assets, the standard asset provisioning has gone up,” Sobti said. The integration of the diamond and jewellery financing business acquired from RBS has also added to the bank’s loan book.

Total advances at the end of the quarter stood at Rs 78,294 crore compared to Rs 59,931 crore in the corresponding period last year, registering a growth of 31%. The bank’s total deposits as on September 30 stood at R80,841 crore, showing a growth of 22% on a y-o-y basis. As on September 30, IndusInd bank’s capital adequacy ratio stood at 16.52%.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition