IndusInd Bank Q3 net up 30% on higher interest income

Moneycontrol Bureau

Privately held IndusInd bank kick-started the third quarter (October-December) earnings season with a positive note. Driven by robust growth in interest income, the Hinduja owned bank reported 30% year-on-year rise in its net profit at Rs 267 crore for the quarter ended December 31, 2012-13.
Net interest income (NII) or the difference between interest earned and paid out, shot up by 34% y-o-y to Rs 578 crore. Loans expanded 31% y-o-y to Rs Rs. 42,426 crore. Net interest income (NIM) stood at 3.46% as against 3.25% in the Q2 FY13. Other income too rose more than 34% to Rs 356 crore.
"Profit growth has been aided by a growth in NIM, along with well diversified fee income streams and active cost management. The recent successful completion of the bank's QIP, reinforces investor confidence in our financial performance and will help sustain balance sheet growth." said said Romesh Sobti, MD & CEO, IndusInd Bank in a release.
The numbers were in-line with the market expectations. Analysts on an average had expected net profit of Rs 272 crore and net interest income of Rs 550 crore.
The lender managed to maintain its asset quality. Gross non-performing asset (NPA) ratio improved marginally to 0.99% compared with 1.03% in the September quarter. The net NPA ratio was little changed at 0.30%. During the quarter, IndusInd fully provided for its credit exposure to Deccan Chronicle that defaulted on Rs 4,100 crore loans taken from a consortium of 13 lenders.
Provisions and contingencies rose to Rs 79 crore as against Rs 43 crore a year back.
As on December 31, total deposits stood at about Rs. 51,100 crore, a rise of 26% from a year ago. More update follows.. Also Read
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