IndusInd Bank reported a 32 per cent jump in net profit to Rs 330 crore in the July-September quarter from Rs 250 crore in the same quarter last year.
Higher interest income, net interest margin and loan growth helped boost the profit.
However, sequentially, the private sector bank’s net declined marginally from Rs 335 crore in the first quarter of FY14.
Net interest income in the reporting quarter grew 37 per cent to Rs 700 crore from Rs 510 crore in the year-ago period.
A 32 per cent growth in core fee income helped non-interest income rise 30 per cent to Rs 417 crore, from Rs 320 crore in Q2 FY13. Gross non-performing assets (NPAs) ratio climbed to 1.11 per cent (from 1.03 per cent).
The hike in the Marginal Standing Facility (MSF) rate in July did not impact the bank as it resorted to refinancing from institutions, such as Nabard and SIDBI.
This reduced costs by 70-100 basis points, helping NIM increase to 3.65 per cent from 3.25 per cent in July-September quarter last year. “Also, we used the bulk-funding route to finance short-term loans and recovered the margins in two months,” said Romesh Sobti, CEO and MD of the bank.
Overall, deposit rates have peaked and margins should improve in the upcoming two quarters, he added.
Sobti also said the bank will look at mobilising more deposits from hereon.
On foreign currency funding, IndusInd Bank is looking to raise $400 million.
The bank’s shares ended 0.14 per cent lower, at Rs 427.35 apiece, on the BSE.