IndusInd Bank Q2 Profit Jumps 30% On Strong NII, Other Income

Private sector lender IndusInd Bank has been meeting street estimates by a 30% growth in its net profit for the September quarter.

Its net profit jumped 30% to Rs 560 crore in the second quarter ended September 30, 2015 from Rs 430 crore in year-ago period.

Net interest income (NII), difference between interest earned and interest paid, also grew 31% at Rs 1,094 crore in Q2 against Rs 833 crore in the corresponding quarter last fiscal on account of strong growth in advances and expansion in NIM to 3.88% from 3.63% in Q2FY15.

Non Interest Income increased by 32% YoY to Rs 783.54 crore in Q2FY16 on back of continued growth across all streams.

The Bank delivered RoA of 1.93% for Q2FY16. Bank’s RoE stood at 16.70% for Q2FY16.

The Bank’s Asset quality continued to show resilience in the quarter. Gross Non Performing Advances as a proportion of Gross Advances was at 0.77% while Net Non Performing Advances as a proportion of Net advances was at 0.31% as at September 30, 2015. The Bank’s specific loan loss Provision Coverage was at 60.01% as at September 30, 2015. The Capital adequacy ratio (as per BASEL III norms) has improved significantly improved at 16.52% versus 12.43% (QoQ).

The Total Advances grew by 31% to Rs 78,294 crore as at September 30, 2015. Corporate Banking accounted for 59.2% of the Advances portfolio. Retail Banking (including MSME)/Business Banking accounted for 40.8% as at September 30, 2015.

Total Deposits grew by 22% to Rs 80,840 crore as at September 30, 2015. Current and Savings Account (CASA) deposits grew by 26% YoY to Rs 28,085 crore taking the CASA ratio to 34.7% as at September 30, 2015 up from 33.9% as at September 30, 2014.

The stocks today closed at Rs 939, down by Rs 6.75 or 0.71% from its previous closing of Rs 945.75 on the BSE.