IndusInd Bank on Friday reported a net profit of R346.90 crore for the quarter ended December 31, 2013, up 30% y-o-y. The net profit was boosted by net interest income of R730.08 crore, up 26% y-o-y. Net interest margins (NIMs) came in at 3.65%, flat sequentially, but up 23 bps y-o-y.
Other income grew 35% to R480 crore against R356 crore in the corresponding quarter of the previous year. SV Zaregaonkar, CFO, said other income was boosted by the lender?s investment banking division and foreign exchange trading. Operating profit for the quarter was R647.36 crore against R472.16 crore in the corresponding quarter of the previous year, a growth of 37%.
Asset quality deteriorated, with gross NPAs increasing to R625.84 crore at the end of the December quarter from R546.39 crore in the preceding quarter. On a y-o-y basis, gross NPAs were up 48.43% from R421.62 crore. Net NPAs for the third quarter stood at R164.94 crore, up 31.70% y-o-y. As a ratio of total assets, gross and net NPAs stood at 1.18% and 0.31%, respectively.
Restructured advances at the bank stood at R163 crore at the end of the December quarter or 0.31% of the total advances. Total advances were at R52,469 crore and total deposits were at R52,247 crore, showing a y-o-y growth of 24% and 10% respectively. The CV loan portfolio stood at R9,971 crore, down from R10,284 crore from the preceding quarter.
?Commercial vehicles are not showing the sort of increase that we thought and the turnaround which we thought would happen in Q3. We expect this turnaround to be postponed to the end of Q4 or Q1 of next year. So, there is a slight uptick there in terms of NPAs, but they are still very range bound,? said Romesh Sobti, MD and CEO. The IndusInd Bank stock was down 2.84% at R404.95 per share at the end of Friday?s close on the BSE.
The bank also took at mark-to-market hit of R64 crore on its bond portfolio in q3.
