IndusInd Bank net up 38.3% as total income rises 35%

By: |
Published: July 13, 2019 1:04:56 AM

Total advances grew 28% y-o-y to Rs 1.93 lakh crore, primarily led by an uptick in the vehicle loan and corporate loan portfolio, which grew 46% y-o-y.

The net interest income (NII) — the difference between interest earned and interest paid by the bank — grew 34% y-o-y to Rs 2,844 crore. (File photo)The net interest income (NII) — the difference between interest earned and interest paid by the bank — grew 34% y-o-y to Rs 2,844 crore. (File photo)

Private sector lender IndusInd Bank on Friday posted a 38.3% year-on-year (y-o-y) rise in its net profit to Rs 1,432.5 crore for the June quarter, primarily on account of a 35% y-o-y jump in total income.

However, the bank in a statement said the results might not be comparable as financial statements include accounting effects of the merger with Bharat Financial.

Operationally, the bank fared well with a 35.6% y-o-y increase in the pre-provisioning profit to Rs 2,590.9 crore, led by a 35% rise in the total income to Rs 8,624 crore. The net interest income (NII) — the difference between interest earned and interest paid by the bank — grew 34% y-o-y to Rs 2,844 crore.

Total advances grew 28% y-o-y to Rs 1.93 lakh crore, primarily led by an uptick in the vehicle loan and corporate loan portfolio, which grew 46% y-o-y. The vehicle loan book, which amounted to Rs 55,046 crore, grew 24% y-o-y.

The net interest margins (NIMs) improved by 46 basis points (bps) q-o-q to 4.05%. “Our NIMs improved as the cost of deposits has gone down and we expect the margins to improve by 15-20 bps in the coming quarters,” Romesh Sobti, MD & CEO, said. “Despite the rate cuts, we shall benefit as most of our loan book (50%) are fixed-rate loans.”

The asset quality was stable, with the gross non-performing asset (NPA) ratio rising by 5 basis points (bps) q-o-q to 2.15%. It rose by 100 bps y-o-y. The total gross NPAs for the quarter amounted to Rs 4,199 crore.

Provisions and contingencies rose 23% y-o-y to Rs 430 crore in the quarter and fell 72.4% quarter-on-quarter (q-o-q), as the lender made heavy provisions against its exposure to IL&FS in Q4FY19. “We have good reasons to believe there can be good amount of recovery from IL&FS SPV accounts as the resolution process is under way and the bids outcome is scheduled for August,” said Sobti.

The net NPA ratio rose by 2 bps q-o-q to 1.23% and by 72 bps on a y-o-y basis.

Total deposits rose 28% y-o-y to Rs 2 lakh crore. The current accounts and savings accounts (CASA) grew by 25% y-o-y to Rs 86,341 crore, while the CASA ratio improved marginally to 43.04%, against 43.42% for the corresponding quarter in the previous year.

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.

Next Stories
1IndusInd Bank Q1 net profit jumps 38 pc at Rs 1,433 crore
2Thousands of digital payment frauds putting Modi’s ‘digital India’ dream at risk?
3India’s war on world’s worst bad-debt pile stalled by regulators