Owing to a strong growth in interest income, private sector lender, IndusInd Bank reported a 71 per cent increase in its net profit at Rs 133.15 crore for the quarter ended September 30, compared to Rs 77.82 crore a year ago.
Net interest income, or the difference between interest earned and interest expended, grew 69 per cent to Rs 329.73 crore from Rs 208.55 crore in the September 2009 quarter.
Core fee income, which excludes proprietary trading revenues, grew 34 per cent to Rs 163.14 crore from Rs 122.39 crore in the corresponding period last year.
The lender also managed to improve its net interest margin from 2.86 per cent in the September 2009 quarter to 3.41 per cent this year.
| GOING STRONG | |||
| Q2 FY'10 | Q2 FY'11 | Change (in%) | |
| Total Income | 787.38 | 1029.20 | 30.71 |
| Operating Profit | 155.32 | 261.85 | 68.59 |
| Net interest income | 208.55 | 329.73 | 58.11 |
| Net profit | 77.82 | 133.15 | 71.10 |
| Gross NPA ratio | 1.50 | 1.21 | - |
| Net NPA ratio | 0.98 | 0.36 | - |
“We expect to improve our margins in the coming quarters. While the impact of rising deposit costs has been priced in, the impact of rising loan rates has still not been,” said Romesh Sobti, managing director and CEO, IndusInd Bank. “We will continue to grow our balance sheet by 25-30 per cent in coming quarters,” he added.
Gross non-performing assets (NPAs) in absolute terms increased to Rs 28.42 crore from Rs 265.11 crore in the year-ago quarter. However, gross NPAs as a percentage of gross advances fell to 1.21 per cent from 1.5 per cent.
As a result of a Rs 1,150 crore qualified institutional placement (QIP) of shares, the lender’s capital adequacy ratio increased to 16.22 per cent from 14.91 per cent in the corresponding quarter last year.
On the Bombay Stock Exchange (BSE), the lender’s shares fell 1.68 per cent from the previous close to end the day at Rs 274.75.
The lender grew its loan book by 33 per cent on a year-on-year basis to Rs 23,452 crore and its deposits by 37 per cent to Rs 13, 290 crore.
Its Current-Account-Savings Ratio improved to 25.44 per cent from 21.22 per cent at the end of the September 2009 quarter.
The lender’s shares fell 1.68 per cent on BSE, to end the day at Rs 274.75.
