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Private sector lender IndusInd Bank reported a 38 per cent jump in net profit at Rs 307 crore for its fourth quarter ended March 31, 2013 on the back of higher interest income and healthy loan book.
The bank had posted a net profit of Rs 223 crore in the year-ago quarter.
Net interest income (difference between interest earned and expended) grew by 42 per cent to Rs 661 crore (from Rs 464 crore in Q4FY12). Non-interest income increased 26 per cent to Rs 368 crore (from Rs 292 crore) on the back of 31 per cent growth in core fee income.
“The NIM growth may not be sharp going forward as cost of deposits may rise with interest rates likely to soften,” said Romesh Sobti, Managing Director and CEO. For the full financial year, the bank’s net profit surged 32 per cent to Rs 1,061 crore as compared with Rs 803 crore in 2011-12 fiscal.
Full Year Results
Net interest income rose 31 per cent to Rs 2,233 crore, while non-interest income was up 35 per cent to Rs 1,363 crore.
As on March 31, 2013, total advances grew by 26 per cent to Rs 44,321 crore, while deposits were up 28 per cent, outpacing advances for the first time to Rs 54,117 crore.
“Demand for loans came from consumer vehicle segment and loans against property. There was also demand for working capital loans from companies,” Sobti said.
About 51 per cent of the loan book accounts for loans to consumers for buying automobiles and equipments.
Net non-performing assets increased to 0.31 per cent as compared with 0.27 per cent last year.
The bank has proposed a dividend of 30 per cent (Rs 3 per share) for the fiscal year 2012-13.
On Thursday, the bank’s scrip ended at a new high of Rs 450.10, up 7.22 per cent, on the Bombay Stock Exchange.
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