PRIVATE sector lender IndusInd Bank on Friday reported a 38 percent growth in net income for the June quarter at Rs 1,433 crore, boosted by the merger of micro-lender Bharat Financial’s good show. The management stressed that the bank has come out of the asset quality woes which had plagued it for the last few quarters due to exposure to the bankrupt infra lender IL&FS.

 

Core net interest income grew 34 percent to Rs 2,844 crore on a 28 percent loan growth and an expansion of net interest margin to 4.05 percent.

 

Managing Director and Chief Executive Ramesh Sobti said a heavy dip in money market rates in June helped boost the margin and the bank is aiming for a further 0.15 percent expansion in the same in the next few quarters.

 

He said its overall loan growth came in at 28 percent, but on a standalone basis this was printed at 26 percent. Despite the slowdown in auto sales, Sobti said the bank was able to grow its mainstay of vehicle finance book by 24 percent. The gross non-performing assets ratio almost doubled to 2.15 percent from 1.15 a year ago and marginally increased from 2.10 percent in March.

 

Sobti said credit cost stood at 0.16 percent from 0.14 percent, which illustrates that the business is as usual. Overall provisions rose to Rs 430 crore from Rs 350 crore a year ago but massively improved from Rs 1,560 crore in the preceding quarter. Disclosing the special mention account data, which denote early signs of stress, Sobti said only 48 accounts are in the over 30-days due list.