IndusInd Bank reported a 25 per cent increase in its third quarter net profit to ₹936 crore from ₹751 crore in the year-ago period.
Net interest income (the difference between interest earned and interest expended) was up 20 per cent year-on-year (y-o-y) at ₹1,895 crore.
Other income (including non-fund-based income, such as commission earned from guarantees/letters of credit, financial advisory fees, selling third-party products, earnings from foreign exchange transactions and profit/loss from sale of securities) rose 17 per cent y-o-y to ₹1,187 crore.
As on December-end 2017, total deposits stood at ₹1,46,086 crore, up 23 per cent vis-a-vis the December-end figure of ₹1,19,218 crore. Within total deposits, the current account-savings account (CASA) ratio improved to 42.86 per cent in the reporting quarter against 37.04 per cent in the year-ago quarter.
As on December-end 2017, total advances stood at ₹1,28,542 crore, up 25 per cent over the December-end 2016 figure of ₹1,02,770 crore. Gross non-performing assets in absolute terms edged up to ₹1,499 crore as at December-end 2017 against ₹1,345 crore as at September-end 2017.
Gross non-performing assets to gross advances ratio rose to 1.16 per cent from 0.94 per cent.
Net interest margin was almost steady at 3.99 per cent against 4 per cent in the year-ago quarter.
“All vectors for both topline and bottomline have progressed as per plan. We have maintained a stable quality loan book,” said Romesh Sobti, MD and CEO.
Capital adequacy ratio improved to 15.83 per cent against 15.31 per cent in the year-ago period.
Ashutosh Kumar Mishra, Senior Research Analyst, Reliance Securities, said the bank’s loan growth is expected to remain much ahead of the industry, supported by pick-up in commercial vehicle/construction equipment lending, micro-finance book and leveraging of both retail and SME expertise on the newly-merged customer base.
Looking ahead, Mishra sees the bank sustaining strong growth in CASA deposits and fee-based income.
IndusInd Bank shares closed at ₹1,698.60 apiece, down 2.08 per cent over the previous close on the BSE.
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