Hindujas-promoted IndusInd Bank will overtake its peers in the next three years, by leveraging its strong capital base that gives the bank enough headroom to lend more, Group Chairman S P Hinduja said today.
The bank expects 40-45 per cent hike in advances during the current fiscal, against the average loan growth of 20 per cent by most other banks.
"IndusInd Bank is now poised for rapid growth as a significantly strengthened entity... (which) will overtake its peers in the next three years, as measured by the criteria of productivity, profitability and efficiency," Hinduja, Chairman of the IndusInd International Holdings Ltd (Mauritius), said at the 15th Annual General Meeting here.
"Its Capital Adequacy Ratio, a key indicator of stability, stands at a comfortable 11.91 per cent as on March 31, 2008, well above the regulatory minimum of nine per cent," he said.
The ratio further improved to 13.16 per cent at the end of the April-June quarter of the current fiscal from 12.16 per cent in the first quarter of the previous fiscal.
While most new generation private sector banks launched in the early 90s have disappeared, IndusInd Bank has remained the sole survivor with its strong fundamentals, said Hinduja, the London-based business tycoon.
A 79 per cent jump in net interest income helped IndusInd Bank increase its profit after tax by a record 44.48 per cent to Rs 19.1 crore in Q1 this fiscal.
