The bank has reported a net interest income, or core income, growth of 18% to ₹4,495 crore versus ₹3,793 crore a year ago. The net interest margin for the December quarter stood at 4.27%.
“Our profits have grown on the back of healthy net interest margins and client fees,” said Sumant Kathpalia, managing director of IndusInd Bank. “The bank remains on track to achieving its strategic ambitions and having financial metrics in the top quartile of the industry.”
“We are focusing on the retailisation of deposits, increasing customer acquisition and loan growth will be driven by the retail segment,” Kathpalia added.
The gross non-performing loan ratio stood at 2.06% at the end of the December quarter versus 2.48% in the same period last year. The net non-performing loan ratio was at 0.62% on year versus 0.71%. Fresh slippages from the consumer banking area continued to remain high. From the overall fresh bad loans of 1,467 crore, the bulk of the additions of 1,348 crore came from the consumer segment. Loans worth 1,055 crore slipped from the standard book to bad loans. The gross non-performing assets of the consumer book stood at 2.60%.
Stress is manifest in two areas — “microfinance, especially from the east coast where we are seeing problems”, said Kathpalia. “The second area is medium and heavy commercial vehicles from Odisha where 60 crore of extra stress has come in. You will see the normalisation happening in a quarter.”
Provisions fell by 36% on year to 1,065 crore versus 1,654 crore in the same period last year.Total advances grew at over 19% to 2.72 lakh crore; the bulk of the growth came from the vehicle finance portfolio which expanded by 18% while the corporate loan book grew by 20%. Deposits grew by 14% to 3.25 lakh crore of which CASA (current account savings account) deposits increased to 1.36 lakh crore.