IndusInd Bank clocks 26% growth in Q1, profits soar to Rs.661crore

indusind-outsidePrivate sector lender IndusInd Bank has reported a 26 per cent year-on-year rise in its net profit for the quarter ending June 30 to Rs 661.38 crore. Improved margins and a healthy growth in total income are the twin factors that majorly shaped up the healthy growth.

The bank’s total income during the quarter rose by more than 22 per cent compared to the corresponding quarter last year to Rs 4,264.66 crore, as advances rose by 30 per cent over the same period to Rs 72,243 crore.

Net interest income, the difference between interest earned and interest expended, rose by around 38 per cent Y-o-Y to Rs 1,356.42 crore. The net interest margin expanded 29 bps to 3.97per cent.

Total deposits grew 31 per cent year-on-year to Rs 1,01,768 crore, up from Rs 77,693 crore at the end of June 2015.

“We have started the year on a strong note with all key performance vectors upwardly trended,” Managing Director and Chief Executive Officer Romesh Sobti said in a post-results statement, adding that he expected the bank’s credit to grow at around 30 per cent in the current financial year.

IndusInd Bank’s provisions for the quarter under review, at Rs 230.47 crore, were around 87 per cent higher than in the same quarter last year. During the quarter, the bank made provision of Rs 36 crore on the Food Corporation of India account.

According to the MD, the FCI account is a standard account and the bank only provided for it because it was required to do so.

In terms of the asset quality, the bank witnessed a marginal deterioration as gross non-performing assets (GNPA) as a percentage of total loans, rose 12 bps to 0.91 per cent. The net NPA rose by 7 bps year-on-year to 0.38 per cent.

During the quarter, IndusInd Bank sold Rs 17 crore of loans to asset reconstruction companies, while it recovered Rs 23 crore from ARCs over the same period.

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