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IndusInd Bank today reported 42% increase its net profit to Rs 335 crore in the first quarter due to healthy growth in interest income and improved margins.
Total income of the bank rose by 22% to Rs 2,383 crore in the quarter compared to corresponding quarter last year.
"Profit rose due to rise in core income coupled with fee income,” said Romesh Sobti, managing director and chief executive officer, IndusInd Bank.
Net interest income of the bank increased by 40% to Rs 697 crore, net interest margin (NIM) improved to 3.72% in April-June period of this fiscal from 3.22% reported a year ago.
"NIM will be sustained or improve from the current level going ahead," Sobti said.
Its gross non-performing assets (NPAs) in the quarter was at 1.06% rising 8 basis points year on year. However net NPA improved to 0.21% from 0.27% a year ago.
The bank’s provision coverage ratio (PCR) also improved its provision coverage ratio to 80% from 72% a year earlier. The bank said that any it has policy of transferring unusual gains to unusual provisions and therefore it had done floating provision of Rs 50 crore coming from treasury profits which have improved PCR. “We won’t show unusual gains in profits” said Sobti. Our aim is to have 100% PCR, Sobti said.
The bank’s loanbook increased by 27% to Rs 47,425 crore while deposits grew 23% to Rs 55,660 crore. Lenders low cost current account savings account (CASA) deposit ratio was at 30%.
On promoter shareholding, Sobti said that since RBI has allowed new banks licensees to have 15% promoter stake the same should be allowed for old banks and to that extent the bank is in comfortable position. As of March 2013 the promoter shareholding in the bank was 15.26%. (End)
The bank plans to increase its branch network to 650 by the end of this fiscal.
