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Our Bureau

Third quarter net falls 21 pc due to `tax credit distortions'

REVIEWING RESULTS: Mr Bhaskar Ghose (left), Managing Director, IndusInd Bank, with Mr S. Nagarajan, Joint- Managing Director, at a press conference in Mumbai on Monday. — Shashi Ashiwal

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Mumbai Jan. 29 IndusInd Bank plans a GDR issue before the end of this quarter to raise about Rs 190-200 crore of fresh Tier-I capital and will bring down promoters' stake by almost 3 per cent to 28 per cent from 31.34 per cent.

The bank has recorded a 20.97 per cent drop in net profit at Rs 21.63 crore in the third quarter ended December 31, 2006 against Rs 27.37 crore.

"The drop in net profit was mainly on account of distortions arising from a tax credit of Rs 19 crore in the corresponding quarter last year," said Mr Bhaskar Ghose, Managing Director, IndusInd Bank.

If the tax credit is taken out, the bank has done better, he said. A 75 per cent growth in non-interest income helped to buoy the bank's profit and it has plans to focus on this segment, said Mr Ghose.

Other income

Total income rose to Rs 472.3 crore (Rs 352.18 crore) and other income, including commission, exchange and brokerage for the quarter stood at Rs 92.98 crore (Rs 55.98 crore). Costly deposits pushed down net interest income by 15.03 per cent to Rs 62.81 crore, while non-interest income grew to Rs 218 crore (Rs 180 crore). Net interest margin dipped to 1.27 per cent (1.78 per cent) as the average cost of deposits went up to 6.62 per cent from 5.84 per cent.

Deposits stood at Rs 15,942 crore (Rs 13,780 crore) and advances at Rs 11,268 crore (Rs 9,196 crore). "Low cost deposits have increased by Rs 488 crore over the last one year. The CASA ratio has gone up to 13.68 per cent (12.28 per cent)," said Mr Ghose.

A single bad account of a major oil refinery company has pushed up net NPAs to 2.55 per cent from 2.49 per cent, he said.

IndusInd Bank's scrip closed at Rs 53.20, down from previous close of Rs 55.45 on the BSE.

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IndusInd Bank to raise Rs 200 cr thru GDR issue

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