IndusInd Bank net profit rises by 75%, stock unmoved

IndusInd Bank has done well in the December quarter, with its net interest income rising by 53% to Rs 363 crore, in the quarter ended December 2010, over the same period a year ago. Its net profit has risen 75%, to close at Rs 154 crore in this quarter. The bank’s year on year growth is similar to that for September 2010 quarter, when its net profit rose by 71% and net interest income rose by 58%.

The growth in operating profit by 68% to Rs 292 crore is indicative of the fact that the company has kept its expenses under been under control.

The sequential growth of net interest income (NII) at 10%, is lower than 14% achieved in the December 2009 quarter. However, net profit growth in the same period is a little higher, at 16% compared to 13%. Treasury income of Rs 24 crore is higher by 62% over the December 2009 quarter.

Indusind’s advances have risen by 31% to Rs 25,000 crore while deposits have rise by 24% to Rs 30,663 crore.
NPA levels have reduced from that in the previous year, to Rs 91 crore, from Rs 129 crore in the same period a year ago. Non-performing assets (NPA) as a percentage of loan assets is down to 0.36% in the December quarter, compared to 0.67% a year ago.

In core fee income, foreign exchange income showed the maximum growth by 96% to Rs 33 crore this quarter, on a year on year basis. Corporate and commercial banking account for 60% of the total amount outstanding, the rest being accounted for by consumer finance assets.

Indusind’s return on equity at 16% was lower than the 19% it achieved in 2009-10, while net interest margin at 3.6% is higher than 2.9% in 2009-10.

The share price of the company was down marginally, at Rs 227, compared to its previous close of Rs 229.

Read the IndusInd Bank’s press release and investor presentation.

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