IndusInd Bank reported a 30 per cent increase in third quarter net profit at Rs 347 crore against Rs 267 crore in the corresponding quarter of the previous year. Despite an increase in bad loans, profit rose on account of robust growth in loans and fee income.
The private sector bank logged 26 per cent growth in net interest income at Rs 730 crore.
Other income grew 35 per cent to Rs 480 crore (from Rs 356 crore) on account of growth in fee income (up 30 per cent) and forex income (58 per cent).
“In this set of results (Q3), we have absorbed a mark-to-market loss (on investments) of almost Rs 64 crore,” said Romesh Sobti, Chief Executive Officer and Managing Director.
The bank took an MTM loss for the entire Q3, compared to only one month in the previous quarter, Sobti said. In the second quarter, the bank had taken an MTM loss of Rs 50 crore.
As on December 30, 2013, total advances grew 24 per cent year-on-year on account of healthy corporate loan growth. Deposits grew 10 per cent during the quarter. The bank will see some rebalancing of its portfolio mix from the current 53:47 tilted towards the corporate book. The bank expects the commercial vehicle segment (20 per cent of total loans) to see an uptick in Q3 FY2015.
Gross NPAs increased to Rs 626 crore (1.18 per cent) from Rs 422 crore (0.99 per cent) as on December-end 2012.
Loan loss provisions increased 59 per cent to Rs 126 crore (from Rs 79 crore in Q3 FY13).
Net interest margin (NIM) was up at 3.65 per cent. “NIMs will be sustained unless the RBI cuts interest rates substantially,” Sobti added.
On Friday, the IndusInd Bank scrip ended at Rs 404.95 a share on the BSE, down 2.84 per cent over the previous close.
beena.parmar@thehindu.co.in