The leading private sector bank, IndusInd Bank, has earned a net profit of Rs 76.62 crore for the third quarter of the current financial year against Rs 58.52 crore earned during the corresponding period last year, up by 31 per cent. The bank has projected a net profit of Rs 103 crore for the financial year 1997-98.
During the period under review, the deposits have grown by 73 per cent and advances have grown by 30 per cent. Commenting on banks lower credit deposit ratio IndusInd Banks managing director Solomon Raj said, The bank intends to go slow on disbursements as it shall adopt a selective approach in catering to only high credit-worthy borrowers.
The bank has shown deposits of Rs 3,793 crore for December 1997 against Rs 2,191 crore in the last corresponding year. The advances have touched Rs 2,352 crore at the end of the third quarter of 1997-98 against Rs 1,801 crore in the last corresponding period.
The investment made by the bank have jumped by 109 per cent to Rs 1,509 crore from Rs 720 crore by the end of third quarter.
The bank has posted an operating profit of Rs 184.26 crore during the third quarter of the financial year 1997-98, while the operating profit for the entire year was Rs 124.95 crore. Commenting on banks performance, Solomon Raj said, The bank ratio which is in the range of 10 to 11 per cent is perhaps the lowest in the entire banking industry.
According to the press release issued by the bank, the overall business level (deposits + advances) have increased by 22 per cent during April and December 1997. The capital adequacy ratio of the bank stands at 16 per cent against the RBIs stipulation of 8 per cent.
