IndusInd Bank on Thursday said its net profit for the quarter ended March 31 expanded 30 per cent to Rs 223 crore, from Rs 172 crore a year ago, driven by higher fee income and rise in interest income from advances.
The private sector lender’s net profit grew 39 per cent to Rs 803 crore during financial year 2011-12 (April-March).
Net interest income, or the difference between interest income and interest expense, was Rs 464 crore during the quarter, up 20 per cent year-on-year. Net interest margin, however, narrowed 21 basis points from a year ago to 3.29 per cent in January-March, due to an increase in cost of deposits.
Fee income surged 60 per cent during the three months to Rs 264 crore.
“The financial year 2011-12 has been a year of challenges — against a backdrop of weak global and a sluggish domestic market...We continue to emphasise on scale with profitability. Our branch expansion plan is on track and we will have 650-700 branches by 2014,” Romesh Sobti, managing director and chief executive, said in his post-earnings comments.
The bank’s asset quality remained stable during the quarter. The gross non-performing asset ratio and the net non-performing asset ratio were 0.98 per cent and 0.27 per cent, respectively. The provision coverage ratio was at 72.7 per cent as of March-end.
Advances during the year expanded 34 per cent to Rs 35,064 crore, while deposits grew 23 per cent to Rs 42,362 crore. The share of low-cost current account savings account deposits was 27.3 per cent of total deposits.
The bank closed the year with a capital adequacy ratio of 13.85 per cent.