Indusind Bank Sticky Loans Dip Under 6 Per Cent

IndusInd Bank has managed to bring down its non-performing asset (NPA) levels from 7.2 per cent to a shade under 6 per cent during the year ended March 31, 2000. The bank's net profit increased 52.42 per cent from Rs 36.80 crore to Rs 56.09 crore.

The bank has also revamped its credit risk management department to examine loans of Rs 5 crore and above on an on-going basis.

Further, the bank's advances and deposits have improved leading to higher profit in the year. Net advances grew 38.12 per cent from Rs 2,662.27 to Rs 3,677.05 crore, while deposits have advanced 30.44 per cent from Rs 5,018.42 crore to Rs 6,545.97 crore. Compared to this, the average deposit growth in the industry was 13.5 per cent.

 

The bank's cost of deposits have substantially dropped owing to impressive rise in current and savings accounts balances. While current account balance have advanced 55 per cent, savings balance rose 46 per cent. Net current account balance of the bank stands at Rs 869.68 crore, up Rs 309.64 crore, while net savings account balance at Rs 137.42 crore is up Rs 43.45 crore from the previous year.

The bank has earned a higher operating profit of Rs 212.57 crore, which is 61.72 per cent higher than the previous year's Rs 131.44 crore. The bank has announced a dividend of 12.5 per cent on its 16-crore equity shares of Rs 10 each.

Meanwhile, the bank has been focusing heavily on capital market-related businesses. As banker to the book building portion of eight initial public offerings (IPOs), the bank mobilised funds aggregating Rs 179.34 crore, while as a debenture trustee in four cases, the bank raised Rs 172.50 crore.

The bank has also started equity trading with a corpus of Rs 10 crore. The bank, as a policy, has been investing in A group and NIFTY shares. The bank posted a profit of Rs 1.23 crore on an average investment of Rs 7.5 crore for 5 months. The annualised yield was 40 per cent.