IndusInd Bank results takeaways

Market expectation from banking results was that the decline in interest rates would result in higher treasury income on account of rising bond yields, however, IndusInd Bank’s results does not reflect these gains. 

For the September 2012 quarter, the bank has posted a net profit of Rs 250.25 crore as compared to Rs 193.09 crore in the September 2011 and Rs 236.26 crore in June 2012. Income from treasury operations stood at Rs 21.55 crore as compared to Rs 32.92 crore in the previous quarter.

Following are the other key takeaways from the company results:

• Net interest income (NII) stood at Rs 509.73 crore as compared to Rs 419.16 crore in September 2011 and Rs 475.1 crore in June 2012.
• Net interest margin (NIM) stood at 3.25 per cent as compared to 3.22 per cent (YoY)
• Gross NPA at 1.03 per cent as against 1.09 per cent
• Net NPA at 0.29 against 0.31 per cent
• Capital Adequacy Ratio is sharply lower at 11.76 per cent as against 14.32 per cent in Spetember 2012.
• Provision coverage ratio stands at 72.09 per cent
• Advances grew by 30.83 per cent
• Deposits grew by 24.49 per cent
• Cost of deposits lower by 18 basis points which helped in improvement of NIM
• Net Income from corporate banking increased from Rs 104.90 crore to Rs 138.14 crore (YoY)
• Net Income from retail banking increased from Rs 224.58 crore to Rs 272.56 crore

At 3.00 pm the stock trades 2.45 per cent lower at Rs 357.70