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| IndusInd Bank bottom line sees four-fold jump at Rs 87 cr in Q1 | |
| BS Reporter / Mumbai July 9, 2009, 0:25 IST | |
 IndusInd Bank, a private sector new-age lender, reported a more than four-fold increase in net profit to Rs 86.5 crore year-on-year for the quarter ended June 30, 2009, aided by a healthy show in treasury income.
The lender has recorded a growth of 80 per cent in net interest income at Rs 167 crore, mainly on account of the corporate loan book, which grew 60 per cent on a y-o-y basis. Total income increased 37.4 per cent to Rs 801 crore as against Rs 583 crore in the corresponding quarter of the previous financial year.
Treasury income soared to Rs 68.63 crore in the quarter ended June 30, 2009. The bank had recorded a loss of Rs 20.55 crore in the corresponding quarter the previous year. Net non-performing assets (NPAs) as a percentage of advances shrank to 1.01 per cent as against 2.41 per cent in the year-ago period. The lender’s capital adequacy ratio decreased to 12.14 per cent from 13.16 per cent in the year-ago period.
Romesh Sobti, managing director and chief executive officer, said, “Significant increase in interest and non-interest income, better margins and reduction in NPAs were among the major achievements of the quarter.” The lender’s advances grew 24 per cent to Rs 16,451 crore as against Rs 13,268 crore in the corresponding period last year.
Total deposits increased 19 per cent to Rs 21,638.78 crore as against Rs 18,116 crore in the year-ago period. Low-cost current account-savings account (Casa) deposits, at Rs 4,371 crore, made up 20.20 per cent of the total deposits as against 17.61 per cent in the year-ago period.
The banks was planning to raise equity capital of $75-100 million through a qualified institutional placement, which could result in an equity dilution of 10-15 per cent, Sobti said.
The lender is also looking to step up its business in housing loans below Rs 30 lakh and has set up a division based out of Chennai to lead this effort.
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