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IndusInd Bank's net profit rose 30 per cent to Rs 223 crore for the quarter ended March 2012, against Rs 172 crore in the year-ago period. The growth in profits was on account of higher net interest income, fee income and lower delinquencies.
Net profit for the full year increased by 39 per cent to Rs 803 crore (Rs 577 crore).
The bank announced a dividend of 22 per cent, against 20 per cent last year.
Net Interest Margin was higher than in the previous quarter, but lower than in the year-ago period. This was due to deposit rates moving up in the last quarter, said Mr Romesh Sobti, Managing Director, IndusInd Bank.
Cost of deposits increased to 8.27 per cent in the March quarter from 8.16 per cent in the December quarter. Cost of funds increased marginally to 7.27 per cent from 7.24 in the preceding quarter.
Cost of funds
The bank managed to keep a check on cost of funds by taking recourse to refinance from Nabard and SIDBI. For the just ended fiscal the bank availed itself of Rs 3,500 crore as refinance, against around Rs 2,900 crore last year.
IndusInd Bank is one of the few banks that hiked the Savings Bank deposit rate to 6 per cent after the deregulation of the rates. This helped the bank increase its customer base. SB accounts grew by 18 per cent over the previous quarter; the bank added over 60,000 SB customers in the March quarter alone.
Deposit rates
About a cut in deposit rates Mr Sobti said, “We don't foresee a reduction in SB rates in the near future because the difference between them and fixed deposits is high. A 50 basis point reduction in SB rates is not enough to reduce the cost of deposits.”
The corporate loan book grew by 24 per cent year-on-year while the consumer finance book grew by 47 per cent. Consumer finance accounts for 49 per cent of total loan book.
This year, too, the consumer finance book would grow faster than the corporate book, Mr Sobti said.
Shares of IndusInd Bank closed at Rs 345.2, lower by 0.09 per cent, on the BSE on Thursday. They had touched a 52-week high of Rs 351.9 during the day.
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