IndusInd Bank Q1 profit soars 26% on strong NII, other income

Net interest margin for the current quarter was 3.97 percent as against 3.68 percent in year-ago period, the private sector lender said.

According to analysts' polled by CNBC-TV18, net profit was expected at Rs 654 crore and net interest income at Rs 1,304 crore for the quarter.

Other income (non-interest income)) increased by 27.8 percent year-on-year to Rs 973 crore and operating profit surged 33.7 percent to Rs 1,233.8 crore in quarter ended June 2016.

IndusInd Bank said total advances as on June 2016 were higher by 30 percent at Rs 93,678 crore and deposits were up 31 percent at Rs 1,01,768 crore compared with corresponding quarter of the previous year.

Provisions for bad loans remained at elevated levels, rising 87 percent YoY and 7.9 percent QoQ to Rs 230.5 crore in Q1FY17.

Asset quality slightly weakened during the quarter as gross non-performing assets (NPA) increased to 0.94 percent compared to 0.87 percent in preceding quarter. Net NPA rose to 0.38 percent from 0.36 percent in same period.

Gross NPA in absolute terms was up 10.8 percent at Rs 860.6 crore and net NPA was higher by 10.5 percent at Rs 355.5 crore on sequential basis.

The bank said tax expenses for the quarter stood at Rs 341.9 crore, up 24.6 percent compared with Rs 274.35 crore paid in year-ago period.

At 14:37 hours IST, the scrip of IndusInd Bank was quoting at Rs 1,132.20, up Rs 5.45, or 0.48 percent after hitting a 52-week high of Rs 1,147.50 on the BSE.Posted by Sunil Shankar Matkar