IndusInd Bank net up 34% in Q3

IndusInd Bank reported growth of 34 per cent in net profit on the back of robust core fee income for October-December 2011. The bank’s net profit grew to Rs 205.96 crore from Rs 153 crore in the corresponding quarter last financial year. The core fee income registered growth of 46 per cent from Rs 171.86 to Rs 250.34 in the period under review.

In October, the bank had increased the interest rate on savings bank deposits by 200 bps soon after the Reserve Bank of India deregulated the product. This helped the private sector lender to garner 21 per cent more funds in savings bank account as compared to the previous quarter.

The bank’s net interest margins, however, contracted to 3.25 per cent in the December-ended quarter, as compared to 3.35 per cent in the previous quarter. “The NIMs have now stabilised. Our retail book largely comprises loans on fixed rates that would help maintain our margins when interest rates are expected to ease,” said Romesh Sobti, MD and CEO.

Despite increase in savings deposit base, the bank’s Current Account and Savings Account (Casa) ratio was down to 26.52 per cent at the end of December-ended quarter from 27.6 per cent last quarter.

The bank’s net interest income grew by 19 per cent to Rs 430.65 crore in the December ended quarter as compared to Rs 363 crore in the same period last year. While advances grew at a pace of 25 per cent, the bank’s deposits grew by 32 per cent as compared to the corresponding period last year.

On the asset quality front, the bank’s net Non-performing Assets (NPA) ratio was down to 0.29 per cent from 0.36 per cent a year ago.

Gross NPA ratio also declined to 1.02 per cent from 1.21 per cent in the same period.

The bank’s Capital Adequacy Ratio (CAR) stood at 13.43 per cent as on December 30, 2011 from 15.61 per cent a year ago.