Mumbai : Healthy loan growth, following a buyout of a diamond portfolio, coupled with a sharp uptick in other income helped IndusInd Bank post a 30% year-on-year rise in Jul-Sep net profit to 5.60 bln rupees.
The bottomline was slightly above the analysts’ estimate of 5.36 bln rupees.
On a sequential basis, the bank’s profit-after-tax was up around 6.7%. Managing Director and Chief Executive Officer Romesh Sobti said the bank’s profit was supported by loan growth, along with improvement in net interest income on account of fall in cost of funds and fresh equity capital.
The bank clocked a total on-year loan growth 31% at 782.94 bln rupees as on Sep 30. Sobti said that excluding the diamond portfolio, which the bank brought from Royal Bank of Scotlan N.V. in Jul-Sep, the loan growth stands at 24%. Owing to higher loan growth, IndusInd Bank’s net interest income grew 31% on-year to 10.94 bln rupees.
IndusInd Bank will announce a “significant” reduction in Base Rate next week, Sobti said, adding that the bank’s benchmark rate will trend with a downward bias for the next six to eight months.