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IndusInd Bank has posted a 29 per cent jump in net profit for the fourth quarter ended March 31, 2014 at Rs 396 crore driven by healthy interest income and loan growth.
The net profit was at Rs 307 crore in the year-ago quarter.
For the financial year ended March 31, 2014, the bank’s board of directors has recommended a dividend of 35 per cent (30 per cent in the previous year).
Net interest, non-interest income
Net interest income (difference between interest earned and expended) grew 18 per cent to Rs 781 crore from Rs 661 crore in the same quarter last year. Non-interest income soared 42 per cent to Rs 523 crore (Rs 368 crore) on the back of growth in core fee income, including foreign exchange income, investment banking and loan processing fees.
The mid-sized bank amortised mark-to-market treasury losses amounting to Rs 28 crore during the quarter and cumulatively Rs 88 crore for the full year.
During the quarter, the net interest margin (NIM) rose 10 bps to 3.75 per cent from 3.65 per cent in Q4FY13.
“The tone of the RBI gave an assurance that the rates will not be raised…but no mention of a reduction. So, the interest rate cycle is likely to remain high for the next two quarters,” said Romesh Sobti, CEO and MD of the bank.
Asset quality stable
Though provisions towards bad loans increased to Rs 121 crore during the quarter from Rs 82 crore in the fourth quarter last year, the asset quality remains largely stable.
Gross non-performing assets (NPAs) deteriorated slightly to 1.12 per cent as on March 31, 2014, from 1.03 per cent last year. Net NPA ratio was also up at 0.33 per cent (0.31 per cent).
As on March 31, 2014, total advances increased 24 per cent year-on-year to Rs 55,102 crore (Rs 44,321 crore), while total deposits grew slower 12 per cent to Rs 60,502 crore from Rs 54,117 crore as on March 31, 2013.
“Our corporate book grew faster than the retail book, which suffered largely due to a slowdown in vehicle financing,” Sobti said.
The lender sold about Rs 35 crore to asset reconstruction companies (ARCs). “Our total assets sold to ARCs will be halved over the next six months from Rs 138 crore till date,” he added.
Full year results
For the full year 2013-14, the net profit increased 33 per cent at Rs 1,408 crore from Rs 1,061 crore a year ago. Net interest income grew 29 per cent to Rs 2,891 crore.
The bank added over 100 branches and 250 ATMs during the year increasing the network to 602 branches and 1,110 ATMs.
IndusInd Bank shares ended at Rs 487.20 per share, up 0.63 per cent over their previous close on the Bombay Stock Exchange.
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