MUMBAI: The fifth largest private lender Indusind Bank has clocked a muted 2.2 per cent on-year growth in net income at Rs 2,171 crore in the June quarter of the current financial year, on a spike in bad loans and flat margins.
The bottom line was impacted as the Hinduja group promoted bank’s asset quality slipped with gross NPAs rising to 2.02 per cent on-year and net NPAs also inching up to 0.60 per cent from 0.57 per cent, the management said in a statement Friday.
This had provisions and contingencies for the quarter rsing to Rs 1,050 crore from Rs 991 crore, an increase by 6 per cent. Total loan-related provisions were at Rs 7,537 crore or 2.2 per cent of the loan book.
Net interest income for the quarter grew 11 per cent to Rs 5,408 crore and net interest margin inched down to 4.25 per cent from and 4.26 per cent. But the yield on assets rose to 9.87 per cent from 9.60 per cent despite the cost of funds rising to 5.62 per cent from 5.31 per cent.
Other income rose to Rs 2,441 crore from Rs 2,210 crore, and core fee income grew 11 per cent to Rs 2,348 crore.
Deposits rose to Rs 3.98 trillion from Rs 3.47 trillion, a growth of 15 per cent of the low-cost Casa deposits rose to Rs 1.46 trillion with current account deposits at Rs 48,475 crore and savings deposits at Rs 97,659 crore. Casa deposits comprise 37 percent of total deposits.
Advances rose to Rs 3.48 trillion from Rs 3.01 trillion, an increase of 15 percent.
Despite the muted numbers, the Indusind counter closed with 1.7 per cent gains at Rs 1,403.40 on the BSE, whose benchmark index rallied 1.6 per cent after five days of losses.