Net interest income (NII), or the core income a bank earns by giving loans, increased 20.04% to Rs1,894.81 crore versus Rs1,578.42 crore a year ago.
Net profit for the quarter stood at Rs936.25 crore against Rs750.64 crore a year ago. On a quarter-on-quarter basis, they fell 19.61% from Rs293.75 crore.
Romesh Sobti, MD & CEO, IndusInd Bank said, "The Bank has continued to show a steadfast performance again in this quarter".
The bank maintained its net interest margin at 4 per cent level even as the share of high-margin retail loans grew to 24 per cent during the reporting quarter. Total GNPA's for the quarter rose by 54 per cent yoy to Rs. 1,498 crore.
"In spite of the growth in balance sheet of 25%, we have seen increase in return on assets, which went up from 1.9% last quarter to 1.96% this quarter". We saw a 34% increase in our disbursements on overall vehicle finance.
The private sector bank's asset quality improved with the gross non-performing assets (NPAs) declining to 3.97 per cent of gross advances as on December 31, 2017 against 4.3 per cent a year ago. If you were to look at only commercial vehicles, the disbursements grew by 39 per cent.
As far as the merger with Bharat Financial Inclusion is concerned, Sobti said the bank has already received approval from the Competition Commission of India, and is awaiting other approvals.