IndusInd Bank Q1 net up 26% at Rs 661.38 cr

Higher net interest income at Rs 1,356.42 cr contributes to the rise

Private sector lender IndusInd Bank posted 26 per cent rise in net profit for the quarter ended June 30 (Q1) on the back of higher net interest and non-interest income.

The bank posted net profit of Rs 661.38 crore for the quarter, compared with Rs 525.04 crore in the corresponding quarter of the previous financial year. Analysts polled on Bloomberg expected it to post Rs 653 crore as net profit for the quarter.

The lender’s net interest income stood at Rs 1,356.42 crore for Q1, up 38 per cent from Rs 980.66 crore posted in the corresponding quarter in the previous financial year. Net interest margin (NIM) stood at 3.97 per cent, against 3.68 per cent in the corresponding quarter of the previous year.

Capital adequacy ratio stood at 15.42 per cent. Current accounts-savings accounts (Casa) ratio stood at 34.43 per cent, against 34.68 per cent in the corresponding quarter of the last financial year.

Gross non-performing assets (NPAs) went up to 0.91 per cent at the end of the first quarter, compared with 0.79 per cent at the end of Q1 in FY16. In absolute terms, GNPA for the June quarter rose to Rs 860.64 crore from Rs 570.12 crore a year before.

Provisions stood at Rs 230.47 crore, up from Rs 123.33 crore in Q1 of FY16.

Romesh Sobti, managing director and chief executive officer, IndusInd Bank, said there was a stability in the quality of the balance sheet and on a quarter-on-quarter basis, the slippages have gone down. “The first quarter kicked off on a sound move on earnings as well as loan books,” he said. On the retail book, vehicle finance saw 23 per cent growth while non-vehicle finance saw 44 per cent growth.

At present, non-vehicle finance constitutes 30 per cent of the loan book, while vehicle finance comprises the rest. The bank is looking to get this to 50-50 in the next few years.

Sobti said rebalancing of the books would happen in 12-15 months, and the lender also wanted to get the corporate-retail books at 50-50.

On June 28, the bank started operations at the International Finance Service Centre (IFSC) banking unit in Gujarat International Finance Tec City (GIFT). Sobti said they already had a Rs 500-crore loan book at this offshore banking unit.

Total advances as of June 30, 2016, were Rs 93,678 crores, up 30 per cent compared with the corresponding quarter in FY16. Total deposits were at Rs 1,01,768 crore, up 31 per cent compared with Q1 of FY16.

The bank would continue its focus on the digital medium. It launched its “Finger Print” mobile banking during this quarter.