IndusInd Bank, the first private sector bank to announce its results has posted a net profit jump of 42 per cent over June quarter 2011.
Following are the key features of bank’s the results
- Net profit of the bank rose by 31 per cent from Rs 180.18 crore in June 2012 to Rs 236.38 crore in June 2011, while it grew by 5.77 per cent as compared to that in March 2012 figure of Rs 223.38 crore.
- Operating profit increased by 30 per cent YoY and 6.5 per cent QoQ at Rs 404.03 crore.
- Net Interest Income grew by 24 per cent YoY and 4.2 per cent QoQ at Rs 484.06 crore.
- Core Fee Income at Rs 269.03 crore has increased by 44 per cent YoY
- Net Interest Margin has fallen marginally from 3.29 per cent in June 2011 to 3.22 per cent in June 2012. However, the fall has been steeper from 3.41 per cent in March 2012
- Cost of funds increased by 7.62 per cent YoY
- Return on assets too have declined from 1.60 per cent in June 2011 to 1.57 in June 2012 and 1.59 in March 2012.
- Capital Adequacy Ratio stood at 12.86 per cent in June 2012 as compared to 14.99 in June 2011.
- Loan grew by 31 per cent and deposits by 27 per cent on a YoY basis
- Gross NPA (non-performing assets) were more or less unchanged at 0.97 per cent while Net NPA was at 0.27 per cent.
- Restructured book is at its lowest level in 4 years
- Loan book is expected to grow at 25-30 per cent going forward.
Comments
While the overall numbers do look impressive on a YoY basis, there are clear signs of stress on a QoQ basis. Increase in cost of fund and falling net interest margins reflect these concerns. Apart from that the quality of earnings have also deteriorated.
Other income, which is largely constituted by ‘core fee income’ as a percentage of operating profit has increased from 69 per cent in June 2011 to 79 per cent in June 2012.
