IndusInd Bank net rises 25%, vehicle finance to see 'boom'

Romesh Sobti MD and CEO Indus Ind Bank

IndusInd Bank net rises 25%, vehicle finance to see 'boom'

Mumbai: IndusInd Bank on Thursday posted a mixed set of numbers when the private sector lender reported December quarter net profit in line with expectations but witnessed a marginal rise in bad loans.

The bank posted net profit of Rs 936.25 crore, higher by 24.72% from Rs 750.64 crore in the corresponding period of previous year.

A Bloomberg poll of experts projected IndusInd Bank to be around Rs 943 crore in Q3FY18.

Commenting on the performance, IndusInd Bank MD & CEO Romesh Sobti said: "The bank has continued to show a steadfast performance again in this quarter".

Its net interest income (NII) grew by 20% to ₹1,895 crore on the back 25% year-on-year credit growth, while non-interest income growth was 17% to ₹1,187 crore.

As a percentage of total loans, gross NPAs stood at 1.16% as compared to 1.08% in the previous quarter and 0.94% in the year-ago quarter. On a quarter-on-quarter basis, they fell 19.61% from Rs293.75 crore.

On the other hand, gross non-performing assets (GNPA) of IndusInd, came in at Rs 1,498.70 crore - rising by 54.24% yoy and 11.40% qoq.

Net NPAs as a percentage of advances rose by seven basis points to 0.46 per cent on a y-o-y basis while on a sequential basis, it rose marginally by two basis points. "We have maintained a stable quality loan book".

The non-interest income for the quarter grew by 17 per cent to Rs 1,186.76 crore as compared to Rs 1,016.80 crore during Q3 of 2016-17.

However, provision and contingencies of the bank rose to Rs 196.40 crore in the December quarter compared to Rs 100.60 crore in the same period a year earlier.

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