IndusInd net jumps 25% on vehicle loan demand

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.