IndusInd Bank on Friday reported a 1.3% growth in profit in the first quarter as banks in he country go through a period of high capital costs.
What Happened: The private lender posted a net profit of ₹2,152.16 crore for the quarter ended June 30, compared with ₹2,123.62 crore that it earned a year ago. This was lower than analyst estimates of ₹2,364 crore.
The Hinduja Group-owned bank’s net interest income for the quarter came in at ₹5407.63 crore, marking a 11% increase from the ₹4,867.11 crore it had posted a year ago. The figure was slightly behind street expectations of ₹5,553 crore.
See Also: Foxconn Mulls Assembly Of iPads At Tamil Nadu Plant, Eyes India Expansion Amid US-China Woes: Report
The lender’s net interest margin fell four basis point to 4.25% from 4.29% in the same quarter last year. The figure was 1 basis point lower than the 4.26% it posted in the preceding period.
Deposits grew by 15% to ₹3.99 lakh crore from ₹3.47 crore posted a year ago, as of June 30. Advances also grew to ₹3.48 lakh crore in the same period as against ₹3.01 lakh crore a year ago — an increase of 15%.
Meanwhile, gross on-performing asset (NPAs) and Net NPA ratios stood at 2.02% and 0.60%, respectively, suring the quarter, which were higher than the GNPA of 1.94% and NNPA of 0.58% it had posted a year ago.
The Hinduja Group was looking to raise its stake in the lender from around 16% to 25% by pumping ₹10,000 crore into the bank, according to media reports, but that doesn’t appear to have materialised yet, as per data from Trendlyne.
During the quarter, the lender said it was set to form a mutual fund joint venture with global asset manager Invesco Asset Management India by acquiring a 60% stake in the latter's India arm.
Price Action: IndusInd Bank’s share price was up 1.81% at ₹1,404 at the end of trading on Friday. The stock has given up more than 13% so far this year.
Read Next: Texmaco Rail Shares Soar 5% After Major Acquisition To Expand Wagons Market Presence
Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.