IndusInd Bank Q1 Net Profit Up 26%

IndusInd Bank's total income increased by 19.73% on YoY basis to Rs 2873 crore, driven by 17.83% and 22.47% YoY growth in its Net Interest Income (NII) and Other Income (OI) respectively. NII and OI for the quarter ended June 2014 stood at Rs 800.66 crore and Rs 576.37 crore respectively. Whereas, Profit after Tax (PAT) increased by 25.75% YoY to Rs 421.06 crore.

During the quarter, Bank's loan book and total deposits expanded by 23.70% and 14.79% YoY to Rs 58664 crore and Rs 63893 crore respectively. On the asset quality front, the Bank has maintained its asset quality. Gross Non Performing Assets (GNPA) for Q1FY15 improved by 1 bps QoQ to 1.11% while, Net Non Performing Assets (NNPA) remained at 0.33%. Provision Coverage Ratio (PCR) stood at 70.12%. Moreover, the Bank has improved its low cost deposits base, Current Account Saving Account (CASA) ratio by 70 bps QoQ and 330 bps YoY to 33.30%. However, the Banks' Yield on Advance was down by 16 bps QoQ to 13.49%, which has dragged down its Net Interest Margin (NIM) by 9 bps QoQ to 3.66%. The Bank is well capitalized to support its growth trajectory with 13.11% of its Capital Adequacy Ratio (CAR) (BASEL III), which is 411 bps higher than the regulator's stringent norm.

The operating profit for the quarter was Rs 749.20 crore as against Rs 641.60 crore in the corresponding quarter of the previous year, showing a growth of 17%. The core fee income for the current quarter was Rs 486.52 crore as against Rs 351.58 crore in the same quarter last year, marking a growth of 38%.

Commenting on the performance, Mr. Romesh Sobti, MD & CEO, IndusInd Bank said, "The Bank has delivered a healthy Net Profit growth of 26% for the Q1FY15 inspite of a stagnant operating environment. The Bank's Core Fee Income has increased by 38%. Apart from maintaining a strong balance sheet, this quarter we announced several new initiatives namely the launch of Tractor and farm Equipment vertical, Video Branch service, and the opening of third currency chest unit at Chennai - all reflecting the Bank's growth trajectory".