IndusInd Bank reported a 21 per cent year-on-year increase in fourth quarter net profit on the back of robust growth in interest and non-interest income and on balances with the central bank and inter-bank funds.
The private sector bank logged a net profit of ₹752 crore in the quarter ended March 31, 2017, as against ₹620 crore in the year-ago period. The net profit in the reporting quarter comes despite a jump in provisions and contingencies.
The bank’s board recommended a dividend of ₹6 per equity share of paid-up value of ₹10 for the financial year ended March 31.
Net profit for fiscal FY17 was ₹2,868 crore as against ₹2,286 crore in the corresponding previous year, a growth of 25 per cent.
In the reporting quarter, net interest income (the difference between interest earned and interest expended) registered a 31 per cent growth at ₹1,667 crore ( ₹1,268 crore in the year-ago period).
Non-interest income was up 33 per cent at ₹1,211 crore (₹913 crore), and operating profit was up 37 per cent to ₹1,572 crore (₹1,151 crore).
Provisions and contingencies shot up 101 per cent y-o-y to ₹430 crore (₹214 crore). This includes a one-off provision of ₹122 crore against a large corporate account classified as ‘standard advance’ pursuant to specific central bank advice in this regard.
Romesh Sobti, MD and CEO, said net profit growth was lower than operating profit growth due to provision on a standard asset, which is a bridge loan not due for payment till June. This was taken as a prudential measure, he added.
As at March-end 2017, advances rose 28 per cent y-o-y to ₹1,13,081 crore and deposits by 36 per cent to ₹1,26,572 crore.
Within advances, corporate loans and consumer finance were up 30 per cent and 25 per cent, respectively, y-o-y.
Low-cost CASA (current account, savings account) deposits jumped 43 per cent y-o-y to ₹46,646 crore as at March-end.
Gross non-performing assets and net non-performing assets edged up to 0.93 per cent (0.87 per cent) and 0.39 per cent (0.36 per cent), respectively.
IndusInd Bank shares closed at ₹1,422.75 apiece, down 0.63 per cent over the previous close on the BSE.