IndusInd aims for 30% growth in credit offtake

Despite a rise in interest rates and the deteriorating macroeconomic environment, private sector lender IndusInd Bank has said it is hopeful of a 25-30% growth in advances in the current financial year.

"We are hopeful of posting 25-30% growth in credit this fiscal. Posting higher credit growth than the system will not be an issue for a mid-size bank like us," IndusInd Bank Chief Operating Officer Paul Abraham told PTI.

IndusInd posted a 29% increase in the size of its loan book to Rs 30,136 crore in the September quarter.

As per the latest Reserve Bank of India (RBI) data, non-food credit offtake from banks grew by 18.5% to over Rs 43.11 trillion in the 12 months to November 4, despite the higher interest rate. This was the first time that credit growth was below the 19%-mark on a year-on-year basis since August.

Referring to strains on its loan book, Abraham said the banking system as a whole is facing pressure from sectors like steel, power and textiles.

"There is no perceptible pressure on our mid-corporate and retail portfolio as of now. But we are closely watching these accounts," he added.

During the July-September quarter, the private lender managed to maintain its asset quality. Its net non-performing asset (NPA) ratio stood at 0.31%, little changed from the previous quarter. Its gross NPA ratio also remained almost unchanged at 1.09%.

The Hinduja Group-promoted bank had earlier said it is following a cautious approach in extending new loans to firms that will be possibly impacted by currency fluctuation.

Abraham further said the bank is hopeful of logging sound growth in deposits in the current fiscal.

IndusInd reported a 45% rise in net profit to Rs 193 crore for the July-September quarter from Rs 133 crore in the same period last year. Its net interest income rose by 27% to Rs 419 crore during the period from Rs 330 crore a year ago.