IndusInd Bank on Thursday reported a 24.73 per cent rise in its third quarter net profit at Rs 936.25 crore, aided by robust growth in its net interest income (NII). NII, which is the difference between interest earned and interest expended, rose 20 per cent on a year-on-year (y-o-y) basis to Rs 1,894.81 crore.
The bank’s total income rose by 16.06 per cent to Rs 5,473.54 crore in the third quarter compared with the same period last year, but the net interest margins (NIMs) remained flat at 3.99 per cent. The operating profit of the bank rose 22.1 per cent to Rs 1,664.69 crore. Gross non-performing assets (NPA) as a percentage of advances rose by 22 basis points in the third quarter to 1.16 per cent on a year-on-year (y-o-y) basis. Compared with the second quarter of FY18, gross NPAs rose by eight basis points.
Net NPAs as a percentage of advances rose by seven basis points to 0.46 per cent on a y-o-y basis while on a sequential basis, it rose marginally by two basis points.
IndusInd Bank managing director and CEO Romesh Sobti pointed out that the balance sheet size of the bank has crossed Rs 2 lakh crore for the first time. “In spite of the growth of the balance sheet, we have seen an increase in the return on assets (RoA) and the return on equity (RoE) as well,” he said.
Sobti also pointed out that the vehicle finance segment is beginning to boom. “We saw 34 per cent increase in our disbursements on overall vehicle finance. If you were to look at only commercial vehicles, the disbursements grew by 39 per cent. The growth is pretty secular — two-wheelers, three-wheelers and tractor segments are also witnessing growth,” he said.
As far as the merger with Bharat Financial Inclusion is concerned, Sobti said the bank has already received approval from the Competition Commission of India, and is awaiting other approvals. IndusInd bank’s provisions and contingencies rose to Rs 236.16 crore in the third quarter compared with Rs 216.85 crore in the same period last year. FE