Published: Fri, January 12, 2018
Business | By Tara Barton

IndusInd Bank shares fall 2 pc

IndusInd Bank shares fall 2 pc

Mumbai: Indusind Bank Ltd on Thursday reported a 24.73% jump in its December quarter net profit on the back of higher net interest income and other income. However, treasury income dropped 17 per cent to Rs 110 crore as yields spiked.

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 past year, but the net interest margins (NIMs) remained flat at 3.99 per cent.

Mumbai: Lending major IndusInd Bank on Thursday reported a rise of nearly 25 per cent in net profit for the third quarter (Q3) of 2017-18. 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.

As on December-end 2017, total advances stood at ₹1,28,542 crore, up 25 per cent over the December-end 2016 figure of ₹1,02,770 crore.

Analysts feel if net interest margin comes above 3.8 percent (against 4 percent in Q2FY18), gross non-performing assets below 1.15 percent (1.08 percent) and credit cost below 20bps (17bps) then that will be taken positively by the Street. "All vectors for both topline and bottom line have progressed as per plan", said Romesh Sobti, Managing Director and CEO, IndusInd Bank.

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Capital adequacy ratio improved to 15.83 per cent against 15.31 per cent in the year-ago period.

Sobti added, "We have maintained a stable quality loan book".

Looking ahead, Mishra sees the bank sustaining strong growth in CASA deposits and fee-based income.

Shares of IndusInd Bank fell by over 2 per cent today even as the company posted a 24.72 per cent increase in net profit for the quarter ended December 2017.

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