Home » Net profit rises 42% for IndusInd Bank in June quarter

Net profit rises 42% for IndusInd Bank in June quarter

Net profit rises 42% for IndusInd Bank in June quarter
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Net profit of IndusInd Bank rose 42 percent to Rs 335 crore during Apr-Jun 2013 from Rs 236 crore in the year-earlier period.

During the quarter, the bank witnessed 27 percent growth in loan portfolio, double the growth rate of the banking industry.

The bank’s net interest income rose 40 percent to Rs 679 crore from Rs 484 crore in the same period last year. Further, it witnessed 48 percent growth in non-interest income to Rs 471 crore, boosted by an increase in mark-to-market gains as the price of government securities rose during the quarter.

From the sale of investments, the bank earned Rs 84 crore in the quarter compared to Rs 38 crore last year.

Profits were higher despite the bank making an extra provision of Rs.50 crore during the quarter. Operating profit before provisions, at Rs.642 crore, was 59% higher than the Rs.404 crore recorded in the same period last year.

The bank set aside more money because its wants to increase its provision coverage ratio to 100 percent of total non-performing assets (NPAs).

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