IndusInd Bank Q1 net profit rises 30% on loan growth

economictimes.indiatimes.com:

IndusInd Bank, India's fifth-biggest private lender by value, on Tuesday reported a 30% rise in its June-quarter net profit at ₹2,124 crore on the back of strong business momentum.Analysts polled by Bloomberg had estimated net profit at ₹2,094.6 crore. For the corresponding period last year, the lender had posted profits of ₹1,631 crore. «The bank has begun executing its next 3-year plan starting Q1 focused on growth, granularity and governance.

Loan growth has been driven by both consumer and corporate segments,» said Sumant Kathpalia, MD, IndusInd Bank. Kathpalia also said that the bank is well-capitalised, and the lender doesn't envisage any capital-raising in the immediate future. The bank may look at raising capital when the CET-1 (common equity tier-1) ratio falls below 14%.

Kathpalia also said that the promoters of the bank, the Hinduja group, haven't indicated any capital infusion in the near future. The bank also saw its net interest income or core income rise 18% to ₹4,867 crore, while the net interest margin for the lender stood at 4.29%, as of June 30. The bank's deposits grew 15% on year to ₹3.47 lakh crore while advances grew 22% to ₹3.01 lakh crore.

The loan book quality remained stable with gross non-performing loan ratio at 1.94% at the end of June quarter versus 2.35% a year ago. The net NPA was at 0.58%. Provisions and contingencies for the quarter were ₹991 crore as compared with ₹1,251 crore for the corresponding quarter of previous year.