New Delhi: Indusind Bank, a private sector lender, announced a 2 per cent increase in consolidated net profit to Rs 2,171 crore for the June quarter.
The Chief Executive and Managing Director Sumant Kathpalia informed reporters that the lender experienced increased pressure on credit card performance during the quarter. During the quarter being examined, the main net interest income increased by 11 per cent to Rs 5,408 crore due to a 15 per cent rise in advances, while the net interest margin stayed the same at 4.25 per cent. The additional revenue increased by 10 percent to reach Rs 2,441 crore.
It achieved a 15 pc increase in deposits, and Kathpalia emphasized that asset growth will match liability growth. He mentioned that the bank maintains its goal of achieving an 18-23 pc growth in assets as outlined in a medium-term plan. In terms of asset quality, the majority of the new slippages, amounting to Rs 1,488 crore out of the total Rs 1,536 crore, originated from retail borrowers and were diversified among various loan categories such as microloans and vehicle loans.
The percentage of gross non-performing assets rose to 2.02 from 1.92 by the end of March. During the current quarter, the bank's total provisions increased to Rs 1,050 crore from Rs 992 crore in the previous year, yet Kathpalia stressed that none of the contingency provisions had been utilized.
He mentioned that there has been a slight increase in credit card delinquency rates by 0.20-0.30 per cent across the industry, while our portfolio is experiencing around 0.30-0.40 per cent stress specifically in credit card accounts. He also noted that the credit costs are still manageable.
He stated that the annualized credit costs stood at 1.21pc, expressing certainty that it would stay between 1.10-1.30 pc for FY25. Kathpalia stated that the bank has been careful with specific areas like personal loans and micro loans, mentioning that it decreased its portfolio by Rs 2,000 crore in the latter. On the personal loans side, he mentioned that it will still experience growth in the future.
He stated that the MFI and vehicle finance sectors experienced reduced disbursements as a result of both the heatwave and the general elections. As of the end of June, the bank had a total capital adequacy ratio of 17.55 percent, with the core buffer at 16.15 percent. On Friday, the Indusind Bank stock ended the day at Rs 1,403.40 on the BSE, rising by 1.68 pc, slightly higher than the benchmark's 1.62 pc increase.
FIRST Business Portal addressing the potential of business capability of North East Region.
