IndusInd Bank reported a 26 per cent increase in first quarter net profit at ₹836.55 crore as against ₹661.38 crore in the year-ago period even as asset quality pressures gradually surfaced during the reporting period.
The profit comes despite provisions (mainly towards bad loans) and contingencies going up 35 per cent year-on-year (y-o-y) to ₹310 crore in the reporting quarter.
In the quarter ended June 30, net interest income (the difference between interest earned and expended) was up 31 per cent at ₹1,774 crore (₹1,356 crore in the year-ago quarter). Other income, including core fee and trading income, rose 20 per cent y-o-y at ₹1,167 crore (₹973 crore).
Net interest margin (NIM) edged up to 4 per cent in the June 2017 quarter against 3.97 per cent in the year-ago quarter. NIM has been steady at 4 per cent over the last quarters.
Advances saw a 24 per cent y-o-y growth at ₹1,16,407 crore. Deposits were up 31 per cent y-o-y at ₹1,33,673 crore.
Romesh Sobti, MD and CEO, IndusInd Bank said, “...With consumption activity slowly picking up, there is a sustained rise in credit uptake. Against the challenging environment, the bank has shown consistent performance, riding on the positive sentiment in the economy.”
Gross non-performing assets (GNPAs) in absolute terms rose by ₹217 crore during the reporting quarter to ₹1,272 crore as at June-end 2017.
IndusInd Bank shares closed at ₹1,559.25 apiece, a tad lower than the previous close of ₹1,559.80.