Private sector lender IndusInd Bank on Tuesday reported a 26.49 per cent year-on-year (y-o-y) rise in net profits at Rs 836.55 crore for the June quarter. The growth in the bottom line was aided by a robust growth in the bank’s net interest income (NII). The lender’s operating profit rose 28.75 per cent to Rs 1,588.53 crore.
NII, the difference between interest earned and interest expended, rose 30.79 per cent y-o-y to Rs 1,774.06 crore. The lender’s total income rose 21.52 per cent y-o-y to Rs 5,302.77 crore in the first quarter. The bank’s profitability remained intact as the net interest margin (NIM) saw a marginal rise in the first quarter to 4 per cent y-o-y and stayed sequentially flat.
Indusind Bank’s asset quality was maintained. Gross non-performing assets (NPA) as a percentage of advances rose by 18 basis points in Q1FY18 to 1.09 per cent y-o-y. Compared to the fourth quarter of FY17, gross NPAs rose 16 basis points.
Net NPAs as a percentage of advances rose by six basis points to 0.44 per cent on a y-o-y basis, while it rose five basis points compared to the previous quarter.
“Our capital adequacy improved during the quarter. That’s an indication of two features. One is we had raised Rs 1,000 crore on additional Tier-I. Another is there has been a reduction in the risk weightages,” said Romesh Sobti, MD and CEO, IndusInd Bank.