IndusInd Bank on Wednesday reported a net profit of R396.05 crore for the three months to March 2014, an increase of 29% from R307.40 crore in the same quarter of the previous year.
The bank's profit was driven by a 18% y-o-y rise in net interest income to R781.21 crore. Net interest margin (NIM) for the January-March quarter rose 10 bps over the previous quarter to 3.75%.
The bank declared a dividend of 35% for 2013-2014, or R3.5 a share compared with the 30% it paid in the previous fiscal. On Wednesday, the bank scrip was up 0.63% at R487.20 on the BSE.
“We have been able to improve our NIM from 3.65% in Q3 to 3.75% in Q4 despite some tough time. This had an impact on our return on assets, which rose to 1.91%. Our corporate advances grew faster than retail advances in this quarter, because a lot of our retail business is in vehicle finance where growth is still sluggish," said MD & CEO Romesh Sobti.
For the full year ended March 2014, the bank's net profit saw a 33% jump to R1,408.02 crore from R1,061.18 crore in the last financial year and its NIM for the full year was at R2,890.71 crore, up 29% from the last fiscal.
The asset quality of the bank was slightly better with gross NPA ratio falling 6 bps to 1.12% in Q4 FY14 from 1.18% in the December quarter. Net NPAs, however, rose by 2 bps to 0.33%. Provisions, including those for bad loans, rose 47% y-o-y to R120.55 crore and saw a sequential fall of 4%.
Total advances for the private sector bank were up 24% at R55,102 crore as on March 31, 2014,with deposits seeing a 12% growth to R60,502 crore at the end of the same period.
IndusInd Bank's capital adequacy ratio under
Basel-III at the end of Q4 stood at 13.83% against 14.38% in the December quarter of fiscal 2014.
As on March 31, 2014, the bank had 602 branches and 1,110 ATMs.