The Hindu Business Line : IndusInd Bank net rises 65% on higher fee-based income

Mumbai, July 25 Backed by a growth in its fee-based income, IndusInd Bank has posted a 65.04 per cent growth in its net profit for the quarter ended June 30, 2007 to Rs 13.22 crore from Rs 8.01 crore in the corresponding quarter of the previous year. The fee-based income was up 53.34 per cent to Rs 22.28 crore (Rs 14.53 crore).

Announcing the results, Mr Bhaskar Ghose, Managing Director, IndusInd Bank, said, “We continue to record an improvement in our profit figures, reflecting our business growth. Going forward, given the expected movement in interest rates coupled with higher-yield loans that we have been booking in recent months, we anticipate a gradual improvement in our net interest margin.”

The bank plans to raise about Rs 300-350 crore through subordinated debt to support its growth. “Given the kind of growth we are witnessing, we will have to issue upper and lower Tier II bonds,” said Mr Ghose. The capital adequacy ratio was at 12.16 per cent (9.85 per cent).

Net interest income

The net interest income was up marginally to Rs 57.4 crore (Rs 57.04 crore). The net interest margin declined to1.12 per cent (1.22 per cent). Mr Ghose said, “The fall in NIM is mainly because our cost of deposits has continued to rise.”

Non-interest income went up 39 per cent to Rs 64 crore (Rs 46 crore).

Total deposits were at Rs 17,328.98 crore (Rs 15,400.06 crore), up by12.53 per cent and advances grew by 6.11 per cent to Rs 11,469.28 crore (Rs 10,809.15 crore). Operating profit was up 19.14 per cent to Rs 32.05 crore (Rs 26.90 crore). The proportion of low cost current account and savings account to total deposits was at 15.01 per cent (13.28 per cent). The net non-performing assets were at 2.51 per cent, substantially up from 1.84 per cent. IndusInd bank’s stock closed lower by 1.89 per cent at Rs 54.45 on the BSE today.

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