Money & Banking

IndusInd Bank net up 25% at ₹880 crore in Q2

Our Bureau Mumbai | Updated on January 08, 2018

Romesh Sobti, MD and CEO

Healthy growth loan growth, low-cost deposits help in steady performance

Healthy growth in advances and low-cost deposits helped IndusInd Bank report a 25 per cent increase in second quarter net profit at ₹880 crore against ₹704 crore in the year ago period.

The private sector bank’s net interest income (difference between interest earned and interest expended) was up 25 per cent at ₹1,821 crore.

Other income, comprising distribution fees, loan processing fees, investment banking, foreign exchange income, trade and remittances, and trading income, among others, rose 22 per cent to ₹1,188 crore.

Net interest margin (NII/ average interest earning assets) in the reporting quarter was steady at 4 per cent.

Overall advances increased by 24 per cent to ₹1,23,181 crore. Corporate advances were up 26 per cent to ₹73,716 crore and consumer finance advances were up 22 per cent to ₹49,465 crore.

While vehicle financing had suffered over the last few quarters due to the impact of BS IV (emission) norms, demonetisation, and implementation of GST, September was a record month for the bank in terms of commercial vehicles loan disbursement (of ₹2,300 crore), said Romesh Sobti, MD & CEO.

Overall deposits were up 26 per cent to ₹1,41,441 crore. Within this, savings bank deposits soared 95 per cent to ₹40,157 crore.

Slippages during the reporting quarter were lower at ₹498 crore (₹608 crore in the preceding quarter).

Gross NPAs to gross advances ratio nudged up from 0.90 per cent in September 2016 quarter to 1.08 per cent in the September 2017 quarter.

Of the 40 large stressed accounts referred by the lenders’ consortium to the National Company Law Tribunal (NCLT) for resolution, Sobti said his bank had an exposure to nine accounts. The bank has made a provision of ₹36 crore towards these accounts.

IndusInd Bank shares closed at ₹1742.60 apiece, up 1.47 per cent over the previous close on the BSE on Thursday.

Published on October 12, 2017

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