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IndusInd Q3 net rises 30% on better interest margin, fees

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BS Reporter Mumbai
Last Updated : Jan 29 2013 | 2:34 PM IST

IndusInd Bank posted a 30 per cent rise in net profit at Rs 267 crore in the third quarter ended December, on robust growth in interest income and fees. The net profit was Rs206 crore in the same period of 2011-12.

Net interest income was up 34 per cent to Rs578 crore from Rs430.6 crore a year before. The net interest margin (NIM) improved to 3.46 per cent from 3.25 per cent in Q3 last year, said Managing Director Romesh Sobti.

The cost of deposits declined 26 basis points, helping the NIMs. The yield on advances also fell, due to a 22 basis point reduction in the lending rate on the overall portfolio. The bank’s other income, comprising fees and earnings from trading, grew 34 per cent to Rs356 crore as against Rs265 crore in the third quarter of FY12.

The loan book expanded 31 per cent to Rs42,426 crore, while deposits rose by 26 per cent to Rs51,098 crore. The share of low cost deposits, savings and current, rose to 28.67 per cent, up from 26.5 per cent a year before.

The capital adequacy ratio (with profit) was 16.56 per cent, with tier-1 of 14.85 per cent at end-December. The stock closed flat at Rs434.20 on the Bombay Stock Exchange.

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First Published: Jan 10 2013 | 12:52 AM IST

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