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The private sector lender IndusInd Bank today recorded a 24% rise in its net profit to Rs. 1,036 million in June, thanks to a good increase in advances and revenues from the first half of the year. interests.
Rs 837 crore in the corresponding period last year.
Basic net interest income rose 20 percent to Rs 2,142 crore on a 29 percent growth in loans, while non-interest income rose from 1,147 crore Rs at 1.301 crore a year ago.
Net Interest Margin (NIM) narrowed to 3.92% and the bank's management stated that it will be stable at the 3.90% level at L & # 39; 39, future also.
Managing Director and CEO Romesh Sobti said the bank had to recognize a market value loss of Rs 85 million on its G-sec portfolio. The setbacks were fully absorbed by the provisioning, he said, adding that earnings growth would have been higher without this impact.
Its overall provisions exceeded Rs 350 crore in the June quarter, rising from 309 crore Rs in the year
The ratio of gross unproductive badets increased slightly to reach 1.15% , one of the lowest in its history, and Sobti has shown confidence in this regard.
Business advances increased by 30% Auto loans, which we can call the genesis of the bank, increased by more than 50% and Sobti said that there will be at least two years of "smooth operation". Sobti said business growth has been diversified, with insolvency resolution loans, energy transportation and renewables being the biggest users of credit, Sobti added, adding that Use of capacity climb up to 74 percent. The bank is cautious but open to project funding proposals, he said.
"We are in good loan growth, there will be more capital expenditure," he said, adding that the bank is well capitalized with a total of 14.70 percent buffers.
He said that the completion of its merger with microcredit BFIL will add two percentage points to its solvency ratio and the bank does not expect Sobti said the current volatility in the rupee is good opportunity for the bank, adding that she made gains of more than Rs 228 crore on the currency front.
He said that the bank does not expect MTM losses in the future will stabilize.
Overall deposit growth was 19% and the share of current short term deposits and savings increased to 43%.
Sobti is pleased with the progress made under the insolvency and bankruptcy code and added during the ongoing litigation is a part of the stabilization of what he called well written legislation.
The bank script paid 1 percent to Rs 1,935 a piece on the ESB today, against gains of 0.85 percent on the benchmark
(This story was not edited by Business Standard staff and is generated automatically from a syndicated feed.)
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