The private bank showed an improvement in asset quality with gross and net NPA ratios declining both on-year and sequentially.
IndusInd Bank on Wednesday reported a 57 per cent on-year rise in July-September standalone net profit to Rs 1,805.22 crore driven by a healthy rise in loan disbursement and net interest income.
On a sequential basis, the private sector bank’s net profit registered an 11 per cent increase from Rs 1,631.02 crore in April-June. The bank’s net profit was slightly higher than that estimated by a Bloomberg analyst compilation.
In the second quarter of the current financial year, IndusInd Bank’s net interest income, or the difference between interest earned and interest expended, rose 18 per cent on-year and 4 per cent quarter-on-quarter to Rs 4,302 crore. The bank’s net interest margin was at 4.24 per cent, up 17 bps YoY and 3 bps QoQ.
“Overall, we work in a three-year time frame, and we have always said our (credit) growth will be at 16-18 per cent CAGR. This year, we should grow at 18-20 per cent CAGR (compounded annual growth rate),” IndusInd Bank’s MD and CEO Sumant Kathpalia said in a post-earnings call.
Growth in bank credit for the overall sector was at 16.4 per cent year-on-year as on September 23, the latest RBI data showed.
In terms of its strategy to garner funds, IndusInd Bank will continue to offer higher rates than the market, Kathpalia said.
“We’ve always said we will fund our growth from granularisation of deposits. We’ve also said our liabilities will be priced higher at 50-75 bps than the market. So I think we will continue that. Of course, we have portfolios which get refinanced from developmental associations and we’ll use them appropriately as we grow our business,” he said.
As on September 30, IndusInd Bank’s total loans were at Rs 2.6 trillion, up 18 per cent on-year and 5 per cent sequentially. 47 per cent of the total advances or Rs 1.2 trillion were for corporate banking, with the segment likely to see around 20 per cent growth going ahead, Kathpalia said.
Courtesy:BS, HBL, FE |
