Moneycontrol Bureau
IndusInd Bank’s fourth quarter (January-March) net profit rose 25.1 percent year-on-year to Rs 495.3 crore, boosted by higher other income and lower provisions. The number was in line with a CNBC-TV18 poll estimate of Rs 498 crore. Net interest income rose 18.4 percent to Rs 925.14 crore, against the poll estimate of Rs 945 crore.
Net interest income is the difference between interest earned and interest expended.
Other income (non-interest income) jumped 26 percent year-on-year to Rs 658.48 crore, driven by a 29 percent rise in fee income. This largely helped offset a 25 percent rise in operating expenses to Rs 733 crore.
Provisions for bad loans dropped 10.9 percent on yearly basis (up 9.6 percent sequentially) to Rs 107.44 crore in the fourth quarter of financial year 2014-15.
The bank's asset quality improved with gross non-performing assets (NPA) declining to 0.81 percent in March quarter from 1.05 percent in previous quarter and 1.12 percent in the year-ago quarter. Net NPA stood at 0.31 percent during the quarter against 0.32 percent Q-o-Q and 0.33 percent Y-o-Y.
In absolute terms, gross NPA fell 16.3 percent quarter-on-quarter (down 9.3 percent year-on-year) to Rs 562.92 crore while net NPA increased 4.5 percent Q-o-Q (up 14.4 percent Y-o-Y) to Rs 210.48 crore in the quarter gone by.
Advances during the quarter shot up 24.8 percent on yearly basis to Rs 68,788.2 crore, which has been above industry average while deposits reported a 22.5 percent growth at Rs 74,134.36 crore, said the bank in its filing.
Ramesh Sobti, MD & CEO of the bank said net interest margin was 3.68 percent during January-March quarter against 3.67 percent in previous quarter.
CASA grew by 30 percent for FY15 while restructuring book was flat during the quarter, he added.
He believes acquisition of RBS' diamond financing business is margin accretive business.
IndusInd (on April 10) said it would acquire RBS’s diamond & jewelry financing business with loan book size approximately Rs 4,500 crore. Ramesh Sobti, MD & CEO of the bank had said jewellery financing business has been growing at 25-30 percent and would be margin accretive.
The private sector lender has approved a dividend at Rs 4 per equity share.
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