The Hindu Business Line : IndusInd Bank Q4 net profit at Rs 21.4 cr

Shifting focus: Mr Bhaskar Ghose (left), Managing Director & CEO, Induslnd Bank, and Mr S. Nagarajan, Joint Managing Director, at a press conference in Mumbai on Friday. - Paul Noronha

Mumbai May 25 IndusInd Bank has reported a net profit of Rs 21.4 crore in the fourth quarter of 2006-07, against a loss of Rs 62.4 crore in the previous year on lower provisioning.

The Managing Director, Mr Bhaskar Ghose, said all the key ratios of the bank were looking better.

The bank had reported a loss in the fourth quarter of 2005-06 as a large oil refinery's account was shifted to the Credit Deposit Ratio Mechanism, he said.

Net interest income increased by 8.95 per cent to Rs 85.81 crore (Rs 78.76 crore). Other income rose to Rs 56.82 crore (Rs 36.35 crore).

Provisions and contingencies dropped to Rs 25 crore, against Rs 93 crore in the year-ago period.

Net interest margin for the quarter fell to 1.63 per cent, against 1.82 per cent in the corresponding quarter of the previous year.

Mr Ghose said the company's net worth had crossed Rs 1,000 crore for the first time. "This will give us access to more sources of funding," he said.

Full-year profit

For the fiscal 2006-07, the bank registered a growth of 85 per cent in net profit at Rs 68.22 crore, compared with Rs 36.82 crore last year.

Mr Ghose said that the bank had shifted its focus from wholesale banking to a balanced combination of corporate loans, vehicle finance, and other retail advances. Vehicular finance contributes a significant chunk of the bank's portfolio at 55 per cent.

Deposits, advances

In 2006-07, deposits grew by 18 per cent to Rs 17,645 crore from Rs 15,006 crore. Advances were up 19 per cent to Rs 11,084 crore against Rs 9311 crore in the previous year.

Cost of deposits moved up to 6.73 per cent (5.87 per cent) while the yield on advances was slightly higher at 9.76 per cent (9.44 per cent). Net Non-Performing Assets ratio increased to 2.47 per cent (2.09 per cent).

Mr Ghose said the bank's focus this year was on increasing its proportion of low-cost deposits (current account and savings account) to 20 per cent of total deposits. The proportion of current account and savings account deposits is 14.92 per cent, marginally higher than the previous year's 12.87 cent.

The capital adequacy of the bank as on March 31, 2007 buoyed to 12.54 per cent, against 10.54 per cent in the previous year.

The bank raised Rs 145.96 crore through a Global Depository Receipts issue in the fourth quarter.

More Stories on : Financial Performance | Private Banks

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
HDFC making preferential issue

Forex reserves fall $9 million

`Pressure on rupee will continue'

IndusInd Bank Q4 net profit at Rs 21.4 cr

Mayorspeak

APSFC urged to bring down NPAs

Seven entities submit bids for pension fund managers' role

`Banks facing higher cost of deposits'

BoB plans opening 10 overseas branches

Union Bank to widen global reach

Banking ombudsman scheme amended

Separate audit department for cooperatives mooted in Kerala