IndusInd Bank Q2 Net Profit up 26% at Rs 704 cr

For the quarter ended 30^th September 2016 IndusInd Bank has posted a steady figure. The net profit rose 25.8 per cent to Rs 704.3 crores in the second quarter of FY17 from Rs 560 crores in corresponding quarter last fiscal. During the quarter, its net interest income (NII) was at Rs 1460.3 crores, up 33.5 per cent on annual basis. Its other income also increased 23.9 per cent at Rs 970.4 crores against Rs 783.5 crores (YoY). Net interest margin (NIM) in Q2 was 4 per cent as against 3.88 per cent YoY.

For the Q2FY17, its net non-performing assets (NPA) were at 0.37 per cent versus 0.38 per cent while gross NPA was at 0.90 per cent versus 0.91 per cent (QoQ). In absolute terms, gross NPA was up 4.4 per cent at Rs 899 crores versus Rs 860.6 crores (QoQ) while net NPA rose 3.8 per cent at Rs 369.2 crores versus Rs 355.5 crores (QoQ).

Provisions, during the quarter, were at Rs 213.9 crores compared to Rs 158.1 crores on annual basis and Rs 230.5 crores on sequential basis. Return on asset in the second quarter was at 1.93 per cent against 1.94 per cent (QoQ). Capital adequacy ratio-basel III in Q2 was at 15.32 per cent compared to 15.42 per cent (QoQ). Deposits were up 38.9 per cent YoY at Rs 1.12 lacs crores as on 30^th September, 2016. In Q2 advances was up 26.4 per cent (YoY) at Rs 98,949.1 crores as on 30^th September, 2016. Core fee income for the quarter was Rs 825.57 crores as against Rs 673.30 crores in the corresponding quarter of the previous year, marking a growth of 23 per cent.

Commenting on the Q2FY17 results, Romesh Sobti the MD & CEO of IndusInd Bank said that in this quarter, the bank has registered positive growth across all vectors despite tepid global markets as well as not so buoyant domestic market. However, the overall industry sentiment looks optimistic with a gradual uptick in credit pickup likely in the coming quarters. Apart from steady financials, the bank continued its focus on digitizing products and strengthening online banking and improving services to customers.

Currently IndusInd Bank share price is trading at Rs 1,226.80 apiece on NSE, up by 0.47 per cent or 5.75 points.