In­dusIndQ4ProfitRises 25%onHigherIn­come

Ap­proves dig­i­tal strat­egy for fewer branches and more trans­ac­tions on­line

The Economic Times - - Companies: Pursuit Of Profit -

Mum­bai: In­dusInd Bank ex­pects de­mand for loans to buy com­mer­cial ve­hi­cles and con­struc­tion equip­ment to con­tinue to fire its credit growth this fis­cal even as its board of di­rec­tors has ap­proved a dig­i­tal strat­egy to route more trans­ac­tions on­line and re­duce the size of branches. In­dusInd on Thurs­day an­nounced a 25% year-on-year in­crease in its net profit for the quar­ter ended March at ₹ 620 crore, up from ₹ 495 crore a year ear­lier, driven by both in­ter­est and non-in­ter­est in­come.

In­dusInd Bank shares, how­ever, fell 1.35% as the bank in­creased its pro­vi­sions to ₹ 214 crore from ₹ 107 crore last year. Net NPAs in­creased to 0.36% from 0.31% last year.

“There has been an en­cour­ag­ing trend for the fu­ture of in­ter­est in­come growth. Go­ing ahead, we will also bal­ance our re­tail and cor­po­rate port­fo­lio equally and the non-ve­hi­cle consumer loan port­fo­lio will also in­crease,” said Romesh Sobti, chief ex­ec­u­tive at In­dusInd Bank.

SV Parathasarthy, the bank’s consumer fi­nance head, said the govern­ment’s in­fras­truc­ture spend­ing push will spur growth in con­struc­tion equip­ment, which will keep credit growth for the bank high.

“Last fis­cal our com­mer­cial ve­hi­cle book grew in dou­ble dig­its, faster than the in­dus­try and this year we ex­pect the con­struc­tion equip­ment also to show a strong growth be­cause of the govern­ment spend­ing par­tic­u­larly in roads,” he said.

In­dusInd’s board has ap­proved a dig­i­tal fo­cus that will cut costs by mak­ing branches leaner and could also re­sult in higher in­cre­men­tal rev­enues for the bank.

“This will lead to re­con­fig­u­ra­tion of branches and more trans­ac­tions will be through our hubs in Mum­bai and Chen­nai. We have stud­ied the mod­els in de­vel­oped mar­kets and also taken help from some tech­nol­ogy com­pa­nies l i k e Ga r t n e r, ” s a i d P a u l Abra­ham, COO.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.