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ndusInd Bank reported a 42 per cent jump in net profit to Rs 335 crore in the first quarter ending June 2013, thanks to robust growth in interest income and drop in bad loans.
The private sector lender had posted a net profit of Rs 236 crore in the same quarter last fiscal.
Net interest income (difference between interest earned and expended) soared 40 per cent to Rs 679 crore. Other income rose 48 per cent on the back of increase in fee and treasury incomes.
Net non-performing assets (NPAs) declined to 0.21 per cent from 0.27 per cent in Q1 FY13. However, gross NPAs in the quarter increased to 1.06 per cent from 0.97 per cent.
For the first time, the bank also set aside floating provisions of Rs 50 crore. This improved the bank’s provision-coverage ratio to 80 per cent from 70 per cent.
As on June 30, 2013, advances grew 27 per cent year-on-year, while deposits were up 23 per cent. “The outlook still doesn’t seem encouraging as there are no new lending pools. There are no drivers for credit growth and it will remain subdued in the quarter ahead,” said Romesh Sobti, Managing Director and CEO, IndusInd Bank.
Also, with cost of deposits coming down, Sobti said the bank will follow other banks and cut its base rate soon.
The bank plans to grow its branch network to 650 by fiscal year end from 530 at present.
The IndusInd Bank share fell by 1.25 per cent to close at Rs 495.70 on the Bombay Stock Exchange on Wednesday.
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