Induslnd Bank’s net profit jumps 25%
IndusInd Bank has reported growth in net profit. Its net profit for the second quarter rose 25 per cent to Rs 880.10 crore from Rs 704.26 crore a year ago due to higher net interest income and other income.
Net interest income for the July-September 2017 quarter increased 24.7 per cent to Rs 1,820.99 crore from Rs 1,460.31 crore last year. Other income was at Rs 1,187.57 crore, up 22 per cent from Rs 970.42 crore.
Provisions and contingencies surged 37.34 per cent to Rs 293.75 crore against Rs 213.88 crore in the same quarter last year. Gross non-performing assets (NPAs) rose 49.64 per cent to Rs 1,345.28 crore from Rs 899.01 crore a year ago. As a percentage of total loans, gross NPAs stood at 1.08 per cent as compared to 0.9 per cent in the year-ago quarter. Net NPA was at 0.44 per cent against 0.37 per cent a year ago.
The Hinduja Group-promoted bank said its mainstay commercial vehicle loan book grew 25 per cent, helping the overall loan growth to 18 per cent, helping the bank report strong numbers. Bottom line was also helped by a stable asset quality and lower operational cost coupled with lower cost to income ratio on the back of a savings deposit growth of 95 per cent.
Romesh Sobti, Managing Director of the bank, said total income rose to Rs 5,395.92 crore from Rs 4,439.72 crore.