Indusind Bank Q2 profit rises 25.7% to Rs704.26 crore
Indusind Bank’s net profit in the second quarter rose to Rs704.26 crore from Rs560 crore a year ago
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IndusInd Bank Ltd reported on Wednesday a 26% increase in its second quarter net profit on higher interest income and stable asset quality.
Net profit rose to Rs704.26 crore in the September quarter from Rs560 crore a year ago. Thirteen analysts polled by Bloomberg had estimated a profit of Rs707.2 crore.
Net interest income or the core income a bank earns from lending, increased by 33% to Rs1,460 crore from Rs1,094 crore a year ago. Total advances rose 26% to Rs98,949 crore as on 30 September from a year earlier, led by strong growth in both retail and corporate loans.
Total deposits at the end of the second quarter rose 39% to Rs1.12 trillion from a year earlier. The share of CASA (current account/savings account) accounts to total deposits stood at 36.5% from 34.7% last year. The bank’s balance sheet which had been consistently growing since the third quarter of FY2014, touched Rs2.1 trillion in the September quarter. Net interest margin expanded to 4% in the September quarter for the first time in the history of the bank.
But growth in non-interest income slipped to 24% as treasury profits for the quarter showed a sequential decline.
Asset quality remained stable with gross non-performing assets (NPAs) rising 4.4% to Rs899 crore in the three months ended September from the preceding quarter. Gross NPAs as a percentage of total loans stood at 0.91% at the end of September quarter, little changed from three months earlier.
“Net credit cost on maintaining NPAs on the books of the bank in the second half is 28 basis points. We expect this cost to increase to 60 basis points by the end of the year,” said Romesh Sobti, managing director and chief executive of IndusInd Bank.