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Private sector lender IndusInd Bank’s net profit stood at Rs 330.23 crore for the quarter ended September this year, a rise of 32 per cent compared to the year-ago period, primarily due to growth in interest and fee incomes.
The bank’s total income increased 19 per cent to Rs 2,435.3 crore, while operating profit rose 40 per cent to Rs 587.92 crore. Net interest income grew 37 per cent to Rs 699.94 crore. While core fee income rose 32 per cent to Rs 389.48 crore, non-interest income increased 30 per cent to Rs 416.73 crore.
“The drivers for net profit growth are interest income and fee income. Costs are two-fold---there is a cost for doing business and costs as a consequence of losses. The revenue drivers we have built are very diversified. Diversification is the key to fee income. Interest income depends on how you manage your balance sheet in turbulent times like these,” said Romesh Sobti, managing director and chief executive.
On a sequential basis, however, net profit fell 1.38 per cent. Net profit for the quarter ended June 2013 stood at Rs 334.84 crore.
For the first half of this financial year, the bank’s net profit rose 37 per cent to Rs 665.07 crore, compared to the corresponding period last year. The bank’s current account and savings account ratio improved to 31.76 per cent for the April-September period from 27.98 per cent in the year-ago period.
Net interest margin for the quarter ended September was 3.65 per cent, against 3.25 per cent in the corresponding period last year. Growth in gross non-performing assets stood at 1.11 per cent, against 1.03 per cent in the year-ago period.
Net NPAs fell from 0.29 per cent to 0.22 per cent during the same period.
During the quarter, provisioning stood at Rs 88.86 crore, compared with Rs 49.07 crore in the year-ago period. During the quarter ended June 2013, provisioning stood at Rs 132.06.
