Private sector lender IndusInd Bank reported a 25% increase in net profit to ₹936.15 crore for the quarter ended December 30 on the back of healthy credit growth.
Its net interest income (NII) grew by 20% to ₹1,895 crore on the back 25% year-on-year credit growth, while non-interest income growth was 17% to ₹1,187 crore.
Stable interest margin
The net interest margin (NIM) was stable at 3.99% for quarter as against 4% in the corresponding quarter of the previous year.
The bank saw deposit growth of 23% with savings deposits growing at 68%.
“The highlight of the quarter really was balance sheet crossed ₹2 lakh crore for the first time,” said Romesh Sobti, MD & CEO IndusInd Bank, during the post-earnings media interaction.
“In spite of the growth in balance sheet of 25%, we have seen increase in return on assets, which went up from 1.9% last quarter to 1.96% this quarter. The return on equity has also gone up. So, the returns have moved up as much as the growth in the balance sheet which means the revenue and bottomline have kept pace with the growth in the balance sheet,” he said.
He said vehicle finance, which is now entering into a boom phase, showed robust growth. “There are two star features during the quarter. One, of the growth in savings bank which grew by 68%. The other is vehicle finance, which is beginning to be a sort of boom situation. We saw a 34% increase in our disbursements on overall vehicle finance. If you look at only commercial vehicle, disbursements grew by 39%,” Mr. Sobti said.
Asset quality of the lender worsened with gross non-performing assets (NPA) going up to 1.16% in Q3 compared with 1.08% in the previous quarter while net NPAs were at 0.46% compared with 0.44%.
