CV financing biz unaffected due to mining woes: IndusInd
IndusInd Bank has seen no impact so far on its vehicle finance business from the disruption of mining activities in many parts of the country, a top official has said.
October 15, 2012 / 09:04 IST
IndusInd Bank has seen no impact so far on its vehicle finance business from the disruption of mining activities in many parts of the country, a top official has said.
"We do have very less exposure in these zones. So, our business has not been impacted due to halting of mining operations. Rather, our vehicle finance business has grown higher than the industry in the recent past," Head of Consumer Finance at IndusInd Bank, S V Parthasarathy, told PTI.He said the bank relies more on repeat customers (who already own a vehicle and seek loan for another) for commercial vehicle finance in these zones.Due to investigations into illegal mining in major producing regions like Odisha, Karnataka, Goa among others, mining has been halted in many parts. This has resulted in slow demand for commercial vehicle finance and also triggered fears of defaults.According to the bank, its retail loan book grew by around 48 per cent in the second quarter of current fiscal.Consumer finance comes under the retail segment, in which a major chunk is of vehicle loans.IndusInd Bank also said it hopes to grow its overall loan book 25-30 per cent in the current financial year.The bank had reported a 30 per cent growth in net profit to Rs 250.25 crore in the second quarter on the back of sound growth in fee and net interest income.Net profit was at Rs 193.09 crore in the corresponding period last year.Total income of the bank rose by 31 percent to Rs 2,048.42 crore during the quarter ending September against Rs 1,563 crore reported in the same period year ago. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
