(PTI) IndusInd Bank on Wednesday reported a 57 per cent jump in its September quarter net profit at ₹1,805 crore, helped by a reduction in money set aside as provisions for potentially sour loans.
The private sector lender reported an 18 per cent growth in the core net interest income at ₹4,302 crore on the back of an 18 per cent loan growth and the net interest margin widening to 4.24 per cent as against 4.07 per cent in the year-ago period.
Amid the 'war on deposits' in the system, the bank was able to grow its deposit book by 15 per cent during the second quarter of the current fiscal.
Its Managing Director and Chief Executive Sumant Kathpalia said the bank will grow its overall loans by 18-20 per cent during the fiscal, and is also confident of growing its deposit base in a granular way by industry-beating offerings.
The other income grew 9 per cent to ₹2,011 crore during the September quarter, of which the core fee income grew 24 per cent.
Kathpalia said there has been a significant drop in the fresh slippages at ₹1,572 crore, which helped in getting the gross non-performing assets ratio down to 2.11 per cent from the 2.77 per cent in the year-ago period.
This helped reduce the overall provisions to ₹1,141 crore from ₹1,706 crore in the year-period, and hence, helped the most in increasing the bottomline.
Kathpalia said the second half of a fiscal year is always good for business and the bank is already witnessing increased traction in disbursements during the October quarter. Demand for both microlending and vehicle loans is expected to drive retail credit growth, while the corporate advances will continue with its over 20 per cent growth, he said.
The bank is aiming to grow the mortgage book to ₹1,000 crore by the end of FY23 as it tests the waters to increase the same to more than ₹10,000 crore by FY24, Kathpalia said.
The bank's overall capital adequacy ratio stood at 18.01 per cent as of September 30 and it will not be looking at raising funds for up to a year, Kathpalia said.
Its scrip closed 0.40 per cent down at ₹1,218.35 a piece on the BSE as against gains of 0.25 per cent on the benchmark.