IndusInd Bank Second Quarter Net Profit Jumps 26% To Rs 704 Crore Inline With Estimates
Analysts polled by Bloomberg had estimated a net profit of Rs 707.2 crore.
IndusInd Bank Ltd. reported a 26 percent increase in its September quarter net profit led by higher interest income from loans, fees, and commissions.
Net profit in the second quarter rose to Rs 704.3 crore from Rs 560 crore a year ago. Analysts polled by Bloomberg had estimated a net profit of Rs 707.2 crore.
Net interest income (NII), or the core income a bank earns, increased 33 percent to Rs 1460.3 crore from Rs 1094.3 crore last year. Non-interest income, including fees and commissions, rose to Rs 970.4 crore from Rs 783.5 crore, a rise of 24 percent.
The bank’s net interest margin (NIM) came in at 4 percent for the quarter, higher than 3.88 percent reported in April-June period. Total advances as on September 30 were at Rs 98,949.1 crore, up 26.4 percent from the same period last year.
The overall industry sentiment looks optimistic with a gradual uptick in credit pickup likely in the coming quarters.Romesh Sobti, managing director, IndusInd Bank said in a press release.
Total deposits at the end of the first quarter were reported at Rs 1,12,313.3 crore, up 39 percent from last year. The share of current account savings account (CASA) to total deposits improved by 179 basis points to 36.53 percent as on 30 September, from the same period a year ago.
Gross non-performing assets (NPAs) rose 4.5 percent to Rs 899 crore at the end of the second quarter from Rs 860.6 crore in the first quarter. On a year-on-year basis, gross NPAs were 49.3 percent higher than the Rs 602 crore reported in the same quarter last year.
Provisions and contingencies fell 7.2 percent to Rs 213.9 crore in the quarter from Rs 230.5 crore in the preceding quarter. It marked a jump of 35.3 percent from Rs 158 crore in the same period last year.
As a percentage of total loans, gross NPAs were steady and stood at 0.90 percent at the end of the September quarter, compared with 0.91 percent in the previous quarter and 0.77 percent in the year-ago quarter. Net NPAs made up 0.37 percent of the loan book in the September quarter compared with 0.38 percent in the previous quarter and 0.31 percent in the same quarter last year.