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Our Bureau

Mumbai , Jan. 13

AN increase in the profit of sale of investments helped IndusInd Bank register a 210 per cent jump in net profit at Rs 77.09 crore for the third quarter ended December 31, 2003, up from Rs 24.83 crore in the corresponding period of the previous year.

The bank's total income increased to Rs 259.41 crore from Rs 237.83 crore, as total expenditure decreased to Rs 144.28 crore from Rs 152.71 crore, according to a press release from the bank.

While the net interest margin (i.e., interest earned minus interest expended) was steady at Rs 55.55 crore (Rs 55.77 crore), other income, mainly profit from sale of investments, jumped 63 per cent to Rs 92.77 crore (Rs 56.80 crore). Income on investments fell a tad to Rs 68.53 crore (Rs 69.10 crore).

The net NPAs of the bank stood at Rs 275 crore; the net-NPA-to-net-advances ratio was at 6.5 per cent with adoption of the 90-day norm for asset recognition.

"We will do an aggressive write-off at the year-end to bring the net NPA ratio down to 1-2 per cent," said Mr Bhaskar Ghose, MD, IndusInd Bank.

The capital adequacy of the bank is at 17.07 per cent, up from 16.11 per cent in the previous year.

For the nine months ended December 31, 2003, the net profit of the bank was at Rs 90.17 crore, up from Rs 67.69 crore in the corresponding period of the previous year.

These figures do not include the financials of Ashok Leyland Finance, the NBFC, which is soon to be merged into IndusInd Bank.

Meanwhile, for the merger with the NBFC, IndusInd has applied to the relevant stock exchanges and will seek clearance from the Bombay High Court. "We expect to have a combined balance sheet provided we get clearance from the court by March 2004," Mr Ghose said.

RBI nod to up promoter stake

INDUSIND Bank said it had got clearance from the Reserve Bank of India to up the promoter's holding to 49 per cent by converting the overseas corporate body's investment into a foreign direct investment.

The Hinduja family-controlled IndusInd International Holdings Ltd (IIHL) has got clearance from RBI to increase its stake and will now apply to the Foreign Investment Promotion Board.

Recently, RBI banned all fresh investments by overseas corporate bodies in India, thereby making the conversion into FDI mandatory to increase investment.

The promoter-company plans to up the stake in the bank to 49 per cent by the year-end through market purchases, said Mr Bhaskar Ghose, MD, IndusInd Bank. Currently, the promoter holds 41.3 per cent in the bank, which will dip to 31.5 per cent post-merger.

More Stories on : Financial Performance | Private Banks

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