IndusInd Bank Q4 net jumps 27% to Rs 9.53 bn on higher interest income

IndusInd Bank Q4 net jumps 27% to Rs 9.53 bn on higher interest income
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New Delhi, Apr 19: IndusInd Bank Ltd posted a nearly 27 per cent surge in its fourth-quarter net profit on Thursday, driven by higher interest income.
Net profit climbed to Rs 9.53 billion ($144.9 million) in the quarter ended March 31, from Rs 7.52 billion a year ago, IndusInd Bank, the country’s sixth-largest private lender by assets, said.
Total income during the quarter rose to Rs 58.58 billion, as against Rs 50.41 billion in the same quarter of 2016-17, the bank said in a regulatory filing.
It earned an interest income of Rs 46.5 billion in January-March period of 2017-18, up by 21.4 per cent from Rs 38.3 billion earned in the same period a year ago.
While, the income from investments rose to Rs 8.3 billion for the quarter under review, from Rs 6.44 billion in the corresponding period a year ago.
However, there was slight deterioration in bank’s asset quality with the gross non-performing assets (NPAs) standing at 1.17 per cent of the gross advances as on March 31, 2018, as against a ratio of 0.93 per cent a year earlier.
Net NPAs were 0.51 per cent of the net advances at the end of fiscal ended March 2018, from 0.39 per cent year earlier.
In value terms, gross NPAs were seen at Rs 1,704.91 crore in the year ended March 2018 against Rs 10.54 billion in 2016-17, while net NPAs or bad loans were to the tune of Rs 7.45 billion, from Rs 4.38 billion.
The board of the bank has recommended a dividend of Rs 7.50 per equity share for the fiscal ended March 31, 2018, IndusInd Bank said.
For the entire fiscal 2017-18, bank’s net profit was up by 26 per cent to Rs 36.05 billion, as against Rs 28.67 billion in 2016-17. Total income for the fiscal increased to Rs 220.3 billion from Rs 185.77 billion.
IndusInd Bank stock was trading 0.69 per cent down at Rs 1,832 apiece on BSE in the afternoon trade today.
The bank said it has made necessary provision, as per RBI guidelines, for the fraud detected during the quarter in respect of a gems and jewellery borrower group.