IndusInd Bank net rises 25%, vehicle finance to see 'boom'

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The bank registered a net profit of ₹87.38 crore in the third quarter of 2017-18 as against a profit of ₹68.52 crore in the corresponding period of 2016-17, recording a growth of 27.52 per cent.

The bank's total income rose by 16.06 per cent to Rs 5,473.54 crore in the third quarter compared with the same period a year ago, but the net interest margins (NIMs) remained flat at 3.99 per cent. According to eight Bloomberg analysts' estimates, the bank was expected to post a profit of Rs945 crore.

Commenting on the performance, IndusInd Bank MD & CEO Romesh Sobti said: "The bank has continued to show a steadfast performance again in this quarter".

NII, which is the difference between interest earned and interest expended, rose 20 per cent on a year-on-year (y-o-y) basis to Rs 1,894.81 crore.

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Its net interest margin (NIM) stood at 3.99 per cent for the current quarter as against 4 per cent in the corresponding quarter of the previous year.

Asset quality of the lender worsened with gross non-performing assets (NPA) going up to 1.16% in Q3 compared with 1.08% in the previous quarter while net NPAs were at 0.46% compared with 0.44%. On a quarter-on-quarter basis, they fell 19.61% from Rs293.75 crore. Other income of the bank stood at ₹194.62 crore (₹133.59 crore) during the period.

The non-interest income for the quarter grew by 17 per cent to Rs 1,186.76 crore as compared to Rs 1,016.80 crore during Q3 of 2016-17.

Provisions and contingencies rose 8.9% to Rs236.16 crore in the quarter from Rs216.85 crore a year ago. On qoq basis NII edged up by 4 per cent due to 2 per cent qoq increase in interest income.

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