IndusInd Bank Q3 net profit up 34%

Mumbai: Private sector lender IndusInd Bank posted 34 per cent increase in net profit at Rs 205.9 crore for the third quarter ended December 31.

The bank had reported a net profit of Rs 153.8 crore in the corresponding quarter last fiscal, IndusInd Bank said in a filing with the BSE.

The total income of the lender also increased to Rs 1,654.8 crore during the quarter from Rs 1,110.8 crore over the year-ago period.

The bank's Net Interest Income (NII) stood at Rs 430.65 crore against Rs 363 crore in the same period previous year, registering a growth of 19 per cent.

For the first nine months of 2011-12, the bank reported 43 per cent rise in net profit at Rs 579.23 crore compared to Rs 405.56 crore in the same period a year ago.

The bank had a total income of Rs 4,579.9 crore in the first nine months compared to Rs 3,072.5 crore in the previous financial year.

IndusInd Bank is among the few private sectors banks to raise savings bank deposit rate in October after the central bank deregulated SB deposit rates.

It has raised its savings account interest rate up to six percent along with raising rates on its non-resident external accounts to 9.25 percent for deposits up to Rs one crore.

"After raising interest rates in our deposit accounts, we have witnessed a rise of around 22 percent in volume terms over the second quarter. Our new customer acquisition is around 50,000 per month in the post-hike period," Sobti said.

The private sector lender also reported an increase in asset quality in the third quarter with fall in non-performing assets (NPAs).

"While our gross NPA fell to 1.02 percent from 1.21 a year earlier, the net NPA decreased to 0.29 percent from 0.36 percent an year ago period," he said, adding the provisioning coverage ratio stood at 72 percent by the end of the third quarter.

During the first nine months period, its advances grew 30 percent to Rs 32,426 crore and deposits rose 32 percent to Rs 40,558 crore.

The bank has a capital adequacy ratio of over 15 percent at the end of the third quarter.

Source: Financial Express