Private sector lender IndusInd Bank On Thursday reported an 80 per cent jump in its third quarter net profit to Rs 45.06 crore as against Rs 25.04 crore in the three-months ended December 2007. The bank said that the quarterly profit was mainly contributed by a 62 per cent growth in fee-based income at Rs 133 crore during October-December 2008.
Recovery of bad debts in corporate portfolio helped the bank to offload a substantial portion of its non-performing assets (NPAs) during the quarter. The gross NPAs for the period were recorded at Rs 263.59 crore, almost 36 per cent lower as against Rs 411.41 crore in the corresponding period last year.
Total income grew by 34.34 per cent to Rs 760.55 crore, while the net interest income stood at Rs 116.58 crore, a growth of 30 per cent on a year-on-year basis.
“The third quarter was tough for banks, and the main aim for us was to preserve our margins. The increase in yield on our advances was higher than the cost of deposits during the quarter, which helped the bank protect its margins. There were write-backs too on the basis of recovery of some bad debts, which contributed to a higher profit,” IndusInd Bank Managing Director Romesh Sobti said.
