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IndusInd Bank net up 30%

BS Reporter  |  Mumbai 

Romesh Sobti , MD & CEO & S V Zaregaonkar, CFO of IndusInd Bank

Private sector lender has reported a net profit of Rs 430.20 crore for the quarter ended September, a rise of 30 per cent compared with Rs 330.23 crore in the corresponding quarter last year. The rise was primarily due to higher and a rise in fee income. The Bloomberg consensus estimate for the net profit was Rs 420.80 crore.

For the September quarter, (the difference between interest income and interest expenditure) rose 19 per cent to Rs 833.11 crore from Rs 699.94 crore in the year-ago period. While non-interest income was up 34 per cent at Rs 558.27 crore, fee income (excluding trading profit) increased 31 per cent to Rs 509.30 crore.

Managing Director and Chief Executive said the bank had begun to see a turnaround in the automobile segment. "Though the growth hasn't fully picked up yet, in September, we saw an improvement in the book; for 12 months, this was almost stagnant. So, a cyclical uptick is happening. We will see more of this in the third and fourth quarters," he added.

Apart from the commercial vehicle segment, the lender has also seen a pickup in demand in other retail segments such as loan against property.

Gross non-performing assets (NPAs), as percentage of total advances, stood at 1.08 per cent, compared with 1.11 per cent in the corresponding period a year ago. The net NPA ratio rose to 0.33 per cent from 0.22 per cent in the year-ago period.

Though the bank's capital adequacy ratio fell to 12.96 per cent from 14.58 per cent a year earlier, Sobti said was well capitalised, adding there weren't any plans to raise funds immediately.

Board seeks extension for Sobti
On Monday, the bank's board approved a three-year extension for Sobti, 64, whose term is to end in January 2015. The board has sought regulatory approval for this.

This follows the allowing managing directors and chief executives of private banks to continue in office till the age of 70.

Sobti had joined as managing director and chief executive on February 1, 2008. In 2011, he was given a three-year extension. This year, he was given a one-year extension.

First Published: Tue, October 14 2014. 00:14 IST