IndusInd Bank net profit rises 24 per cent in Q1https://indianexpress.com/article/business/banking-and-finance/indusind-bank-net-profit-rises-24-per-cent-in-q1-5254185/

IndusInd Bank net profit rises 24 per cent in Q1

The gross non-performing asset (NPA) ratio reducing marginally to 1.15 per cent from 1.17 per cent and the net NPA ratio remained flat at 0.51 per cent.

IndusInd Bank net profit rises 24% in Q1
The core net interest income (NII) rose 20 per cent to Rs 2,122 crore on the back of a 29 per cent loan growth while the non-interest income moved up to Rs 1,301 crore from Rs 1,167 crore in the year-ago period. (Photo for representational purpose)

Private-sector lender IndusInd Bank on Tuesday reported a net profit of Rs 1,035 crore in the quarter ended June, up 23.8 per cent from the corresponding figure in the same quarter last year, on healthy rise in advances and net interest income.

The core net interest income (NII) rose 20 per cent to Rs 2,122 crore on the back of a 29 per cent loan growth while the non-interest income moved up to Rs 1,301 crore from Rs 1,167 crore in the year-ago period.

NII is the difference between interest earned and interest paid by the bank. The net interest margin (NIM) fell to 3.92 per cent from 3.97 per cent in the previous quarter. The bank’s provisions for bad loans rose 4 per cent from the previous quarter to Rs 350 crore. MD & CEO Romesh Sobti said the bank had to book a mark-to-market (MTM) loss of Rs 85 crore on its G-sec portfolio. The reverses have been fully absorbed through provisioning, he said, adding the profit growth would have been higher but for this impact.

The gross non-performing asset (NPA) ratio reducing marginally to 1.15 per cent from 1.17 per cent and the net NPA ratio remained flat at 0.51 per cent. —FE