Custom Search

Monday, July 13, 2015

IndusInd Bank Q1 net profit jumps 25% to Rs 524 cr

Mid-sized private lender IndusInd Bank reported a 25 per cent growth in net profit at Rs 524 crore for the quarter ended June 30, 2015 on the back of strong interest income and lower gross bad loans.

The bank had posted a profit of Rs 421 crore in the year ago quarter.

Romesh Sobti, MD & CEO of IndusInd Bank said, "Inspite of a tough operating environment, credit off-take has increased to 23 per cent."

Last month, the bank raised capital of about Rs 4,400 crore through a qualified institutional placement (QIP) and is in the process to issue preferential shares to raise further Rs 750 crore.

The total of Rs 5,200 crore capital will support organic growth, Sobti added.

This capital will help the bank increase its capital adequacy ratio from 12.43 per cent at present to about 17 per cent.

During the quarter, the bank’s loan growth was at 23 per cent driven by corporate portfolio growth of 27 per cent and retail growth at 18 per cent supported by growth in medium and heavy commercial vehicles.

“The growth has come from enhancement of existing working capital loans... Vehicle financing has also improved. Earlier, we spoke about uptick in the segment but now it is about trends (growth). So, the portfolio is moving up,” Sobti said.

During the quarter, the core fee income of the bank was up by 23 per cent to Rs 599 crore. Net interest income was up by 22 per cent and non interest income grew 26 per cent.

Recoveries from bad loans helped reduce the gross net performing asset (NPA) at 0.79 per cent as on June end, 2015, as compared to 1.11 per cent as on June end 2014.

Net NPA stood at 0.31% compared to 0.33% y-o-y.

Net interest margin increased marginally to 3.68% in Q1FY16 as against 3.66% in Q1FY15.

By year end, the bank also plans to increase its bank branches to 1,000 from the current network of just over 800 branches. “With the new digital wave, we are remodelling our branches…We are looking at a new construct of branches in the metro and other regions and plan to double the branch network in 3 years,” the bank chief said.

IndusInd bank scrip rose 3.27 per cent to end at Rs 923.90 per share on the BSE.

Source : Thehindubusinessline


Post a Comment

Popular Posts

Desi Google | A2Z Famous Quotes | What's Cooking America | Joke Site