IndusInd Bank net zooms 75%

Income from core operations and fees saw IndusInd Bank's net profit for the quarter ended March 31 soar 75.34 per cent to Rs 171.76 crore. The bank's net profit in the year-ago period stood at Rs 97.96 crore.

While net interest income rose 42.26 per cent to Rs 388 crore, fee income increased 47 per cent to Rs 165 crore during the quarter.

For the year ended March 31, 2011, the bank recorded a deposit growth of 28.66 per cent and a credit growth of 27.32 per cent. Going ahead, the bank aims to maintain its credit-deposit ratio at around 75 per cent.

Net interest margin rose to 3.50 per cent, against 3.19 per cent in the year-ago period. However, the bank saw a margin compression of 11 basis points, owing to an increase in the cost of deposits, which rose from 6.17 per cent in the third quarter to 7.03 per cent in the fourth quarter.

“Deposit re-pricing happened much more rapidly than asset re-pricing for the whole banking industry. In the next quarter, the cost of deposits may remain flat but assets may be re-priced upwards,” said IndusInd Bank Managing Director and Chief Executive Officer, Romesh Sobti.

For the year ended March 31, 2011, the bank reported net profit of Rs 577 crore, compared with Rs 350 crore in the previous year — a growth of 65 per cent. While the bank’s net interest income rose 55.29 per cent, core fee income increased by 45.61 per cent.

IndusInd Bank, which recently acquired Deutsche Bank’s credit card business in India, said it would launch credit cards for its customers in the July-September quarter of the current financial year. “The credit card business will not dent our capital or our bottom line when it gets accounted for in the next quarter. Credit card business generally generates good yields,” Sobti said.