IndusInd Bank posts 23% rise in Q1FY19 net profit at Rs 1,035.7 crore
IndusInd Bank has reported a net profit of Rs 1,035.7 crore exceeding analyst expectations for the first quarter of financial year 2018-19. Net profit in the April to June quarter a year ago in FY17-18 stood at Rs 836.5 crore.
For Q1 FY18-19, a Reuters poll had projected net profit to grow 21 percent growth in net profit at Rs 1,014.7 crore.
While a Motilal Oswal report had estimated the merger of IndusInd Bank with Bharat Financial Inclusion to help net profit grow by over 46 percent.
This is the 41st quarter of the Hinduja group-run mid-sized private bank led by Romesh Sobti.
Net interest income (NII), difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, increased to Rs 2,122.4 crore as against Rs 1,774 crore a year ago.
The poll had projected to grow by 19 percent to Rs 2,128 crore.
Provisions and NPAs
Provisions during the quarter increased to Rs 350 crore as against Rs 310 crore a year ago.
Gross non-performing assets (NPAs) as a percentage of total loan rose marginally to 1.15 percent as compared to 1.09 percent a year ago and 1.17 percent in the previous quarter ending March 2018.
Net NPA were at 0.51 percent from 0.44 percent in the same quarter last year and 0.51 percent in the previous quarter.
Net interest margin shrunk marginally to 3.92 percent from 3.97 percent in the previous quarter due to repricing of the loan book and rise in cost of deposits.
Romesh Sobti, CEO and MD of the bank, speaking at the press conference post results announcement said that overall, asset quality showed handsome improvement and the bank added one million customers during the quarter.
He added that the bank is on a target to achieve 200-plus branches for the year.
Overall, profit would have been higher but for the treasury book, where there was a mark-to-market loss of Rs 86 crore. We have made full provisions for the same, Sobti said.
Non-interest income grew 12 percent to Rs 1,301.6 crore as compared to Rs 1,167 crore in Q1FY18.