Mumbai: IndusInd Bank Ltd on Tuesday reported a 23.81% jump in its June quarter net profit on the back of higher net interest income and other income. Net profit for the quarter stood at 1,035.72 crore, against 836.55 crore a year ago. The bank was expected to post a profit of 1,030.70 crore, according to Bloomberg analysts’ estimates.

Net interest income (NII), or the core income a bank earns by giving loans, increased 19.64% to 2,122.43 crore versus 1,774.06 crore last year. Other income was 1,301.60 crore, up 11.51% from 1,167.26 crore a year ago.

Provisions and contingencies were up 12.92% to 350.01 crore in the quarter from 309.97 crore a year ago.

On a quarter-on-quarter basis, they rose 4.31% from 335.55 crore.

Gross non-performing assets (NPAs) advanced 36.88% to 1,740.62 crore at the end of the June quarter from 1,271.68 crore in the same quarter last year. 

As a percentage of total loans, gross NPAs stood at 1.15% as compared to 1.17% in the previous quarter and 1.09% in the year-ago quarter.

Net NPAs were at 0.51% in the June quarter compared to 0.51% in the March quarter and 0.44% in the same quarter last year. 

The loan book saw a growth of 29% with the corporate loan book growing at 30% and retail at 28%.

“The main driver of credit growth is vehicle finance. The construction sector is looking to pull up. We feel that the vehicle industry will be in a bull run for another two years. Non-vehicle retail loans like personal loans and loan against shares are growing well. The corporate book is more diversified. Lot of credit growth is coming from acquisitions, such as funding NCL-linked sales," said Romesh Sobti, managing director and chief executive officer, IndusInd Bank.

“There is also good demand on renewables both solar and wind energy. Capacity utilisation is nudging 74-75%. We are, therefore, in for a secular run on loan growth," said Sobti.

On Tuesday, IndusInd Bank shares closed at 1,934.10 on BSE, down 1.05% from its previous close, while India’s benchmark Sensex Index gained 0.85% to close at 36,239.62 points.