Private sector lender IndusInd Bank has delivered another quarter of strong profit on Wednesday. IndusInd Bank said net interest income jumped to Rs 578 crore in the fiscal third quarter ending December 2012, nearly 34 per cent higher against Rs 431 crore in the corresponding quarter last year. NII is the difference between interest earned on loans and interest paid out on deposits.
Net profit surged nearly 30 per cent year-on-year in the October to December quarter to Rs 267 crore. Operating profit for the quarter was Rs 472 crore against Rs 349 crore in the corresponding quarter of the previous year, showing a growth of 35 per cent.
Analysts had expected the Mumbai-based lender to report Rs 545 crore in NII and Rs 265 crore in net profit.
Net interest margin - a key measure of profitability - grew to 3.46 per cent against 3.25 per cent in the September quarter as cost of funds fell by 26 basis points.
The lender has classified the Deccan Chronicle account as non-performing and said it has made much higher provision for the same than warranted. IndusInd's total exposure to Deccan Chronicle is at Rs 100 crore.
Loan growth was robust, up 31 per cent year-on-year while deposits grew 26 per cent yoy. Consumer finance Advances were up 51 per cent yoy while corporate book jumped 49 per cent. CASA (Current Accounts- Savings Accounts) ratio rose to 28.67 per cent.
"The recent successful completion of the Bank's QIP, reinforces Investor confidence in the Bank's financial performance and will help sustain Balance Sheet growth," Romesh Sobti, MD & CEO of IndusInd Bank said.
IndusInd Bank's Tier I capital is close to 15 per cent. This is sufficient to fuel growth for next three years or so, Mr Sobti said.
Shares in IndusInd Bank traded flat at Rs 434.85 on the BSE at 2.40 p.m. against 0.2 per cent rise in the broader BSE Banking index.
Domestic brokerage IIFL had recommended a "buy" call on IndusInd Bank ahead of earnings. IndusInd Bank has impressive loan profile and resilient fee franchise, the brokerage had said.
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