Indusind Bank Net Profit Up 61% To Rs 73 Crore

IndusInd Bank Ltd has posted a net profit of Rs 73.32 crore, which is a 60.71 per cent increase over the corresponding previous period. The bank board has proposed a dividend of 20 per cent.

IndusInd is also planning a public issue of Rs 45 crore, which is slated to hit the market in August or September next.

Solomon Raj, managing director, IBL, said no decision has been taken on the premium that will be charged. But there are indications that it could be in the region of Rs 30 to Rs 40.

During the last financial year, while deposits grew from Rs 1,412.23 crore to Rs 3,093.1 crore, advances increased from Rs 1121.19 crore to Rs 1927.65 crore.

On account of the lower growth in credit off take, the credit deposit ratio fell from 72.03 per cent in March 1995 to 62.32 per cent. Even as the interest cost of deposits has gone up from 7.93 per cent in 1995 to 11.33 per cent, there has been a corresponding increase in the yields on advances from 14.46 per cent to 19.64 per cent.

IndusInd has succeeded in reducing its dependence on non-resident deposits. These funds, as a percentage of total deposits, came down from 41.5 per cent in March 1996 to 30.26 per cent at the end of the last financial year.

At the same time, foreign currency non-resident deposits as a percentage of total deposits has come down from 45.17 per cent in March 1995 to 17.45 per cent by March 1997.

One reason why the bank has succeeded in reducing its dependence on non-resident deposits is that it is has increased the branch network from nine to eighteen. IndusInd is also planning to set up an investment bank.