In­dusInd net jumps 25% on ve­hi­cle loan de­mand

Business Standard - - ECONOMY - NIKHAT HETAVKAR

In­dusInd Bank’s Septem­ber quar­ter (Q2) net profit rose 25 per cent to ~880 crore, from ~704 crore a year ago, aided by a ro­bust de­mand for ve­hi­cle loans and dou­bling of sav­ings ac­count de­posits. Its net in­ter­est in­come, which is in­ter­est earned mi­nus in­ter­est ex­pended, rose 25 per cent year-on-year to ~1,821 crore. The core fee in­come for Q2 rose 22 per cent to ~1,187 crore over the year-ago quar­ter.

The net in­ter­est mar­gin (NIM), the dif­fer­ence between yield on ad­vances and cost of funds, was flat at four per cent. The com­pany plans to main­tain this NIM and use ex­cess mar­gin from re­tail loans to sub­sidise good qual­ity cor­po­rate book. As of Septem­ber 30, 2017, to­tal ad­vances and to­tal de­posits stood at ~1.23 lakh crore and ~1.41 lakh crore, re­spec­tively. The cap­i­tal ad­e­quacy ra­tio for the quar­ter was 15.63 per cent, against 16.18 per cent in the pre­vi­ous quar­ter.

The gross non-per­form­ing as­sets, as a per­cent­age of to­tal ad­vances, in the re­port­ing quar­ter was 1.08 per cent, against 1.09 per cent in the June quar­ter and 1.93 per cent a year ago.

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