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Mr Ramesh Sobti

Our Bureau

Mumbai, July 25 Aided by an increase in interest income, IndusInd Bank’s net profit increased to Rs 19.10 crore in the first quarter of 2008-09, up 44.48 per cent, from Rs 13.22 crore in the previous year’s corresponding quarter.

For the period under review, the bank’s net interest income grew by 79 per cent to Rs 102.80 crore due to re-pricing of loan books and reduction in cost of deposits.

The bank’s net interest margin (NIM) for the quarter increased to 1.68 per cent compared with 1.12 per cent in the corresponding period last year.

Mr Ramesh Sobti, Managing Director and CEO, IndusInd Bank, said that he expects a further improvement in the bank’s NIM despite high interest outflows.

Total advances grew by 15.69 per cent while total deposits recorded a growth of 4.54 per cent in the first quarter.

Other income fell by 13.6 per cent due to amortisation provision and decline in bad debt recovery.

The bank’s yield on advances also increased to 12.40 per cent in first quarter of this fiscal, Mr Sobti added.

The net NPAs for the quarter declined slightly to 2.41 per cent (2.51 per cent).

The share of current and savings account deposits to total deposits has increased to 17.61 per cent (15.01 per cent).

A tier-I capital infusion of Rs 222 crore by 3 per cent dilution in promoter holding pulled up the capital adequacy ratio of the bank to 13.16 per cent (12.16 per cent).

The shares of the bank closed at Rs 59.10, against the previous close of Rs 57.75, up 2.34 per cent, on the BSE on Friday.

More Stories on : Financial Performance | Private Banks

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