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Strong growth in net interest margins, interest income and credit growth helped IndusInd Bank post a 30 per cent increase in net profit at Rs 267 crore in the third quarter ended December 31, 2012
The private sector lender had reported a net profit of Rs 206 crore in the year-ago period.
Net interest income was up 34 per cent at Rs 578 crore (Rs 431 crore). Net interest margin jumped to 3.46 per cent from 3.25 per cent.
“A decline in our cost of funds by 26 basis points improved our margins. We had mentioned about an uptrend in net interest margins in the last quarter itself,” Romesh Sobti, Managing Director and CEO, said.
Other income also rose 34 per cent to Rs 356 crore (Rs 265 crore) on the back of a 32 per cent rise in core fee income.
Credit growth
The banks’ consumer finance credit growth stood at 37 per cent while corporate book grew 24 per cent. Consumer finance contributes about 49 per cent of the total loan book.
Gross non-performing assets have reduced to 0.99 per cent from 1.02 per cent.
“Our consumer vehicles segment share in our credit portfolio has grown by almost two per cent,” Sobti said.
Capital adequacy ratio
After raising Rs 2,000 crore capital through QIPs, the bank’s capital adequacy ratio has increased to 16.56 per cent from 13.4 per cent in the year-ago quarter.
On further capital requirement for Basel III, the Chairman said the bank will not need to raise any capital for the next three years. “We are capitalised well beyond the Basel III requirements,” Sobti said.
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