IndusInd Bank's net profit rises 33% to Rs 1,309 crore for Dec quarter

IndusInd Bank’s net profit rose 33 per cent to Rs 1,309 crore for the quarter ended December 2019, on improvement in interest margins and robust fee income. The figure was Rs 985 crore in the same quarter a year before.

The share price fell on Tuesday by 3.9 per cent on the BSE, to close at Rs 1,481.1.

Romesh Sobti, managing director, said there was healthy growth in revenue and operating profit. Net interest income rose 34 per cent to Rs 3,074 crore and net interest margin to 4.15 per cent, from 3.83 per cent in October-December 2018.

Non-interest income (fees, commissions) rose 22 per cent to Rs 1,790 crore. The balance sheet crossed Rs 3 trillion and advances crossed Rs 2 trillion. The latter rose 20 per cent by end-December to Rs 207,414 crore, from Rs 173,169 crore at end-December 2018. 

The deposit base expanded 23 per cent to Rs 216,713 crore. The share of current and savings accounts in the total was 42.4 per cent, down from 43.16 per cent a year before. Gross non-performing assets (NPAs) rose to 2.18 per cent of advances, from 1.13 per cent in end-December 2018. Net NPAs rose to 1.05 per cent, from 0.59 per cent. Credit costs, the amount set aside for stressed assets, rose 70 per cent to Rs 576 crore. Sobti said the Provision Coverage Ratio had increased to 53 per cent. The bank made provision of about Rs 240 crore for two fraud accounts (one financial sector entity and another business group). There will be more provisions for such accounts in the coming quarters. The capital adequacy was 13.92 per cent, with tier-I capital at 13.49 per cent at end-December. 

On naming his successor, Sobti said this had been sent to the Reserve Bank of India for approval.