Private sector lender IndusInd Bank on Thursday reported 30% year-on-year growth in fourth quarter (Jan-March) net profit to Rs 223 crore, aided by a strong growth in loan book and fee-based income. The figure was in-line with the market expectation. Net interest income (the difference between interest earned and interest paid out) jumped 20% to Rs 464 crore, driven by loan expansion of 34% at Rs 34,064 crore.
However, the bank's shares remained flat at Rs 345 at the close of the day’s trading. Analysts feel, the stock does not have much room to rise further as shares are already overvalued.
"Despite many concerns over banking industry we have sustained our growth momentum," said Romesh Sobti, MD & CEO, IndusInd Bank.
"We will continue to emphasize on scale with profitability. Our loan book is likely to grow in the range of 25-30% in FY13. Deposits growth too is expected to be higher the previous year. We will shortly cut interests for both side of the balance sheet (loans + deposits).”
During the quarter, core fee income spurted 60% to Rs 264 crore, supported by growth in trade and remittances, foreign exchange business, loan processing fees and distribution fees.
The bank has improved its asset quality. The gross non-performing assets (NPA) ratio fell from 1.02% to 0.98% sequentially while net NPA ratio too fell slightly from 0.29% to 0.27%.
For the full fiscal year (2011-12), the bank’s net profit climbed 39% to Rs 803 crore. NII too rose 24% to Rs 1704 crore.
Deposits grew 23% y-o-y to Rs 42,362 crore. The share of current account and savings account (CASA) to total deposits improved marginally from 27.15% to 27.30%.
Source: www.moneycontrol.com
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DENIP Consultants Pvt Ltd
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