IndusInd Bank Q4 net up 38% at Rs 307 cr

Total income jumps over 23% to Rs 2,191 cr compared to Rs 1,773 cr reported a year ago

IndusInd Bank on Thursday reported a 38 per cent jump in its net profit at Rs 307.40 crore from Rs 223.38 crore a year ago in the March quarter, driven by a healthy rise in its core income.

Net profit grew 32 per cent to Rs 1,061.18 crore in FY13 from Rs 802.61 crore in FY12. During the fourth quarter, income rose 23.55 per cent to Rs 2,190.66 crore compared with Rs 1,773 crore reported a year ago.

Managing Director and Chief Executive Romesh Sobti said, “We have seen sound growth in net profit on the back of healthy growth in interest and fee incomes. We have also maintained stability in our asset quality.” Net interest income soared 42 per cent to Rs 661.23 crore in the quarter from Rs 464.40 crore, pushing up the net interest margin (NIM) to 3.70 per cent, up from 3.29 per cent a year ago.

He said, “NIM has seen significant traction on the back of a fall in the cost of deposits and improvement in the core income in the fourth quarter. We may not see such huge rise in the future, but there will be improvement going ahead.”

On the asset quality front, while gross NPA rose to 1.03 per cent from 0.98 per cent a year ago, net NPA marginally rose to 0.31 per cent from 0.27 per cent in the corresponding period in FY12.

“There is a marginal rise in the gross NPA but the overall asset quality has been maintained. There was no trending up of NPAs in any sector,” he said, adding the total restructured loan book stood at 0.29 per cent of the loan book of the bank.

The bank also said it is not facing any delinquency pressure in the commercial vehicle segment due to halting of mining operations in many parts of the country.

In deposit and credit growth front, the bank reported a 28 per cent rise in its deposits to Rs 54,117 crore and 26 per cent rise in advances to Rs 44,321 crore by the end of the last financial.

Sobti said, “There is moderation in advances in the auto loan segment in the last two quarters. However, we hope things will improve towards the second half this financial.” Sobti said. The bank’s current and savings account (Casa) deposits improved to 29.32 per cent of the total deposits in FY13 from 27.30 per cent in FY12. “The Casa ratio will improve with branch expansion in the future," Sobti said.

The capital adequacy ratio stood at 15.36 per cent with a Tier-I capital being 13.78 per cent by the end of the past financial year. Shares of IndusInd Bank on Thursday surged nearly eight per cent to a record high after the company posted robust results. Led by the rally in the stock the market value of the bank rose Rs 1,576 crore to Rs 23,518 crore.