Private sector lender IndusInd Bank’s second-quarter net profit rose 25 per cent over the previous year quarter. The bank’s net profit rose to Rs 880 crore in the quarter ended September, compared with Rs 704 crore in the year-ago quarter. The bank's net interest income, or the interest earned minus interest expended, rose 25 per cent on a year-on-year basis. The net interest margin, the difference between the yield on advances and cost of fund, was flat at 4 per cent.
The company plans to maintain this NIM and use excess margin from retail loans to subsidise good quality corporate book.The deposit and credit grew at 26 per cent and 24 per cent respectively in the full-year period. The capital adequacy ratio (CRAR) for the quarter was 15.63 per cent against 16.18 per cent in the previous quarter. The gross non-performing assets (NPAs), as a percentage of total advances, in the present quarter, stood at 1.08 per cent, at 1.09 per cent in the June quarter. In the year-ago quarter, the gross NPA ratio was at 1.93 per cent. Provisions and contingencies were Rs 293.75 crore against Rs 213.88 crore in the same quarter last year. This was a decline of 5 per cent from Rs 309.97 crore in the previous quarter. Managing Director, Romesh Sobti stressed the bank's commitment to the microfinance sector but revealed no information on their merger with Bharat Financial Inclusion.