Private sector lender IndusInd Bank reported a 29 per cent rise in net profit for the third quarter ending December 2014, on the back of lower provisioning and healthy loan growth.
The net profit stood at ₹447 crore as against ₹347 crore in the corresponding quarter last year.
“We saw healthy growth in our corporate book across sectors with positive accretion in the commercial vehicles segment with improved asset quality,” said Romesh Sobti, Managing Director and CEO of the bank.
Provisions during the quarter declined 22 per cent to ₹980 crore (from ₹1,262 crore in Q3 FY14). Net interest income (difference between interest earned and expended) grew 18 per cent, while other income was up 27 per cent.
Reversing loan mix As on December-end 2014, total advances grew 22 per cent with a retail-corporate portfolio mix of 42:58.
“We are intensely focused on reversing the loan mix to 50:50…We should get to mid-20 per cent in terms of credit growth, going forward,” Sobti said.
Net interest margin increased a tad to 3.67 per cent in Q3 FY15 as against 3.65 per cent in Q3 FY14.
Gross non-performing assets improved to 1.05 per cent (from 1.18 per cent as on December-end 2013). Net NPA worsened a tad to 0.32 per cent from 0.31 per cent. Net slippages during the quarter stood at a meagre ₹18 crore.
Rate cut unlikely On interest rates, Sobti said that a rate cut is likely only after the Union Budget, and “will be pleasantly surprised if the RBI cuts key interest rates in the policy on February 3.”
After hitting a 52-week high of ₹849 a share, IndusInd shares ended weaker at ₹822.55 on Tuesday, down 1.06 per cent over the previous close.