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.
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.