Private-sector lender IndusInd Bank on Tuesday reported a net profit of Rs 1,035 crore in the quarter ended June, up 23.8% from the corresponding figure in the same quarter last year, on healthy rise in advances and net interest income. The core net interest income (NII) rose 20% to Rs2,122 crore on the back of a 29% loan growth while the non-interest income moved up to Rs 1,301 crore from Rs 1,167 crore in the year-ago period. NII is the difference between interest earned and interest paid by the bank.
The net interest margin (NIM) fell to 3.92% from 3.97% in the previous quarter. The bank’s provisions for bad loans rose 4% from the previous quarter to Rs 350 crore. Managing director and chief executive officer Romesh Sobti said the bank had to book a mark-to-market (MTM) loss of Rs85 crore on its G-sec portfolio. The reverses have been fully absorbed through provisioning, he said, adding the profit growth would have been higher but for this impact. Asset quality at the bank remained almost unchanged from the previous quarter, with the gross non-performing asset (NPA) ratio reducing marginally to 1.15% from 1.17% and the net NPA ratio remained flat at 0.51%.
The banks’ revenue from retail banking grew by 25.5% to Rs3,464 crore this quarter, compared to the corresponding quarter in the previous year. While the revenue from corporate or wholesale banking grew by 20% to Rs2,071 crore during the same time period. Total advances as on June 30 stood at Rs1.5 lakh crore, up 29% from the previous year, while total deposits rose 19% y-o-y to Rs1.58 lakh crore.
The current accounts-savings accounts ratio improved to 43.42% from 37.78% a year ago. The capital adequacy ratio stood at 14.7%. The banks’ share price closed 1% lower at Rs1934.1 per share on BSE on Tuesday. IndusInd banks’ stock has gained 7.5% between April and June this year. (With inputs from PTI)