Interest, other incomes boost IndusInd Bank net 45% in Q2

IndusInd Bank's net profit increased by 45 per cent to Rs 193 crore for the July-September quarter from Rs 133 crore in the corresponding quarter last year.

The increase in profit was on account of a healthy rise in both net interest income and other income.

The operating environment in the second quarter was challenging, which saw a prolonged inflation cycle, prolonged tight liquidity cycle and a prolonged heightened interest rate cycle. Despite this the bank has shown a strong performance, said Mr Romesh Sobti, Managing Director, IndusInd Bank.

Though there was a slight decline in margins, it was lesser than expected. Going ahead, pressure on margins would continue as there does not seem to be any easing on the interest rate front, he said.

Loan book

The private sector bank's loan book has a larger share of the higher yielding consumer finance loans, where the yields are more than 16 per cent. The share of consumer finance in the total advances increased to 47 per cent from 42 per cent in the year-ago period.

Within the commercial vehicle financing portfolio, the second-hand commercial vehicle segment, which is high yielding, is now 10 per cent of the total commercial vehicle book. The aim is to increase it to about 20 per cent within a period of three years, said Mr S.V. Parthasarathy, Head, Consumer Finance.

Half-yearly results

For the six-month period from June to September, IndusInd Bank posted a 48 per cent rise in net profit to Rs 373 crore (Rs 252 crore). Other income increased to Rs 455 crore, up 35 per cent (Rs 336 crore), and net interest income increased 29 per cent to Rs 809 crore (Rs 625 crore).

Shares of IndusInd Bank closed at Rs 267.4, down 0.93 per cent, from Rs 269.9, on the BSE, on Tuesday.