IndusInd Bank net profit rises 28.84% in March quarter, beats estimates
Profit rises to Rs396.05 crore from Rs307.4 crore in the year-earlier period, driven by an increase in income
Mumbai: IndusInd Bank Ltd on Wednesday said net profit in the March quarter rose 28.84% to ₹ 396.05 crore from ₹ 307.4 crore in the year-earlier period, driven by an increase in income.
The profit was higher than the ₹ 373 crore estimated by a Bloomberg poll of 25 analysts.
Net interest income earned from the bank’s core lending business increased 18.14% to ₹ 781.21 crore from ₹ 661.23 crore a year ago.
Other income, or revenue earned through fees, rose 42.14% to ₹ 522.92 crore from ₹ 367.89 crore last year.
The demand for loans was mostly from companies for working capital requirements, managing director and chief executive officer Romesh Sobti said.
“There has been no surge in capital-expenditure demand. Greenfield projects are still languishing at rock bottom and it is only through working capital loans driven by inflation that the banking sector has seen a 15% to 16% credit growth," Sobti said.
The bank clocked a 24% growth in loan demand year-on-year led by demand for loans from companies although retail loan growth was flat.
Net bad loans at the end of the quarter stood at 0.33% compared with 0.31% a year ago.
IndusInd Bank ended at ₹ 487.20 on BSE, up 0.63%, while India’s benchmark Sensex fell 0.92% to 22,277.23 points.
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