MUMBAI: Private sector lender IndusInd Bank today reported a 25 per cent jump in its March quarter net profit at Rs 495.27 crore on a healthy jump in non-interest income.
The Hinduja Group-promoted promoted bank hinted at joining the rate-cut spree, saying a downward revision in base rate is "imminent" and also announced a cut of up to 0.5 per cent in its savings bank deposits from May 1.
Its total non-interest income grew 26 per cent to Rs 658.48 crore, of which the core fee income was up 29 per cent at Rs 568.57 crore during the reporting quarter.
The core net interest income rose by a slower 18 per cent to Rs 925.14 crore.
IndusInd Bank Managing Director Romesh Sobti said that though investors are gearing up for growth, caution is still the sentiment while making investment decisions.
He hinted that the bank would continue to maintain its 25 per cent credit growth in FY 2016 too.
He said the new system of computing GDP growth has "disrupted" credit growth estimation model, under which the loan disbursals grew 2.5 times the GDP.
He said that the bank was able to maintain its net interest margin at 3.68 per cent, adding that in the medium term, it would like to push that number up to four per cent through a rebalancing of its loan book to get consumer as well as corporate advances at equal footing and increasing the share of current and savings account deposits.
The commercial vehicle finance business, which had been under performing due to gloomy economic climate in the last three years, is looking up, and the bank is targeting a 25 per cent growth in volumes from the segment.
A senior bank official said that its commercial vehicle loan portfolio, which accounts for 36 per cent of its overall loan book, grew by a whopping 64 per cent in the reporting quarter.
The diamond financing business acquired recently from ABN Amro is also "margin accretive", Sobti said, adding there will be some help coming from that front.
At present, the corporate loans account for 59 per cent of advances, with consumer finance occupying the remaining portion, Sobti said, adding over the next 18 months the bank is targeting to rebalance the portfolio to get both the verticals equal share.
In the fourth quarter, it sold Rs 60 crore in loans to asset re-construction companies. Only one of the accounts was classified as an NPA while the other three were stressed which would have slipped later. There were no restructuring during the quarter, he said.
The IndusInd counter closed 1.57 per cent down at Rs 933.10 on the BSE.