IndusInd Bank Q1 Net Profit Increases 26%

IndusInd Bank registered a 26% increase in net profit to Rs 421.06 crore for the quarter ended June, owing to an increase in income from fees and commission.

The income from fees increased 38% to Rs 486.5 crore as compared to Rs 351.6 crore in the same quarter of the financial year. Net interest income or the difference between the interest earned and the interest spent increased 18% at the end of the first quarter at Rs 800.7 crore as compared with Rs 679.5 crore in the corresponding period of the previous financial year.

SV Zaregaonkar, chief financial officer at IndusInd Bank, said, “This was on the back of slow growth in the consumer finance advances which grew by only 9% on a year-on-year basis and only 2% if you compare it to the last quarter.”

The share of current and savings account (Casa) deposits increased to 33%, which was 30% in the same quarter last financial year. On the asset quality front, the lender has managed to keep the net non-performing assets (NPAs) at 0.33%. The restructured book for the bank increased to Rs 235 crore in the quarter as compared to Rs 188 crore in the March-ended quarter of FY2013-14.

The loan book of the bank went up by 34% and credit growth by 24%. Although banks have been looking to raise capital, IndusInd Bank does not have immediate plans to go to the capital markets now.

“We had raised capital in December 2012 and at that time we had said that we don’t plan to raise capital for the next three years and we are going to stick to that,” said Sobti.