IndusInd Bank Q1 net up 52% to Rs 180 cr

Private sector IndusInd Bank today posted a 52% jump in net profits for the first quarter ended June 30 at Rs 180.18 crore, helped by a surge in fee income.

The city-based lender's net profit for the April-June period last fiscal had stood at Rs 118.55 crore.

"The core fee income grew 44% to Rs 187.07 crore due to an increase in our third party products, trade and remittances, foreign exchange and investment banking income," IndusInd Bank Managing Director and Chief Executive Romesh Sobti told reporters here.

The net interest income (NIM) was up 32% during the reporting period to Rs 390.01 crore as compared to Rs 295.68 crore during the same period a year ago.

In spite of the high interest rate environment, the bank was able to widen its net interest margin by 9 bps to 3.41%, Sobti said.

The cost of deposits went up to 7.71 from the previous (January-March) quarter's 7.03%, but the bank made up for that by raising its base rate three times, or 125 bps, during the quarter to maintain margins, he said.

Its sequential (over Q4 FY11) credit growth stood at 8%, while the same on a year-on-year basis stood at 31.36%. The deposit growth was a tepid 3% on sequential basis and 28.78 on a Y-o-Y.

IndusInd's total capital adequacy increased to 14.99% as on June 30, 2011, as compared to 13.71% during the year-ago period.

To further strengthen the capital base, the bank is planning to raise Rs 400 crore in Tier-II bonds, Sobti said.

"We will come out with the issue by end of second quarter or early third quarter...We are yet to firm up plans," he added.