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IndusInd Bank Q1 profit grows 24% to `1,036 cr

IndusInd Bank Q1 profit grows 24% to `1,036 cr

Mumbai: Private sector lender IndusInd Bank on Tuesday posted a 24 per cent increase in net profit at Rs 1,036 crore in the June quarter on healthy rise in advances and core interest income. The city-based bank had posted a net profit of Rs 837 crore in the corresponding period last year.

The core net interest income rose 20 per cent to Rs 2,122 crore on the back of a 29 per cent loan growth, while the non-interest income moved up to Rs 1,301 crore from Rs 1,167 crore in the year-ago period.

The net interest margin (NIM) narrowed to 3.92 per cent and the bank management said it will be stable at the 3.90 per cent level in the future as well. Its managing director and chief executive Romesh Sobti said the bank had to book a mark-to-market (MTM) loss of Rs 85 crore on its G-sec portfolio. The reverses have been fully absorbed through provisioning, he said, adding that the profit growth would have been higher but for this impact.

Its overall provisions rose to over Rs 350 crore in the June quarter, from Rs 309 crore in the year-ago period. The gross non-performing assets (NPA) ratio improved marginally to 1.15 per cent, one of the lowest in its history and Sobti exuded confidence on this front going ahead. Corporate advances increased 30 per cent, while retail lending was up 28 per cent.

Vehicle loans grew by over 50 per cent and Sobti said that there will be at least two years of "good-run" in this segment on demand from the construction sector.

PTI

PTI

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