Mumbai, April 16: Private sector lender IndusInd Bank today reported a 29 per cent jump in net profit at Rs 396.05 crore in the March quarter driven by higher margins, fee income growth and cost-control measures.
The bank had a net profit of Rs 307.40 crore in the same quarter of the previous fiscal.
“We have been able to maintain the trend-line growth, both in the topline and bottomline, in profit and loss as well as the balance sheet,” managing director and chief executive Romesh Sobti said here.
During the fourth quarter, the bank saw a 28 per cent spike in fee income to Rs 441.87 crore from Rs 344 crore in the year-ago period. It was boosted by a 49 per cent jump in forex income which stood at Rs 109.1 crore against Rs 73.2 crore a year ago.
For the fiscal, net profit jumped 33 per cent to Rs 1,408.02 crore from Rs 1,061.18 crore in the previous year.
Net interest margin in the quarter stood at 3.75 per cent against 3.70 per cent in the year-ago period.
“There was improvement in our net interest margin in spite of tight liquidity conditions,” Sobti said.
Improvement in margins resulted in an increase in return on assets to 1.91 per cent from 1.77 per cent a year ago.
Revenue rose 27 per cent to Rs 1,304.13 crore from Rs 1,029 crore in the year-ago quarter, while total income stood at Rs 2,702.19 crore against Rs 2,190.66 crore last year.
However, asset quality deteriorated during the quarter with gross non-performing assets rising to 1.12 per cent from 1.03 per cent, while net NPAs rose to 0.33 per cent from 0.31 per cent.
Sobti is, however, confident of stable asset quality in the future. He expects an uptick in the commercial vehicle finance business.
The Pune-based bank took a mark-to-market loss on its government bond portfolio to the tune of Rs 88 crore for the full year, while in the fourth quarter it was Rs 28 crore.
For the year, total advances grew 24 per cent to Rs 55,102 crore from Rs 44,321 crore last year, while deposits rose 12 per cent to Rs 60,502 crore from Rs 54,117 crore.
So far the bank sold Rs 138 crore of its stressed loans to asset reconstruction companies (ARCs), while the reporting quarter saw it selling Rs 35 crore of NPAs to ARCs. Sobti said he expected the ARC portfolio to halve in the next six months.
The bank had started disbursing gold loans since the past four months in eight states. It is focusing only on its customers for gold loans and is disbursing around Rs 6 crore a month, Sobti said.