IndusInd Bank net profit at Rs 71.35 crore; dividend at 14%

By Our Banking Bureau | 10 May 2003

Chennai: Private bank IndusInd Bank has closed fiscal 2002-03 with improved results.

The bank''s total income went up to Rs 988.50 crore (interest income: Rs 742.20 crore) and the net profit to Rs 71.35 crore last fiscal. The figures for the 2001-02 were Rs 894.43 crore (interest income: Rs 710.06 crore) and Rs 50.75 crore, respectively.

Nevertheless, the board has decided to maintain the dividend rate at 14 per cent subject to the approval of the shareholders at the annual general meeting.

On the expenditure side, the interest outgo went up marginally by 2.5 per cent to Rs 560.92 crore (Rs 547.23 crore during 2001-02). The operating expenses stood at Rs 119.07 crore as on 31 March 2003.

During the year under review the bank''s deposit stood at Rs. 8,655.11 crore, and the advances at Rs 5,363.19 crore. The total business-mix crossed Rs 14,000 crore for the year 2002-03. The year also saw investments going up by Rs 42.67 crore to Rs 2,525.56 crore.

The bank''s capital adequacy ratio stood at 12.30 per cent, well above the regulatory requirement of 9 per cent.

The ratio of gross non-performing assets (NPAs) to total advances stood at 5.24 per cent while the net NPAs stood at 4.52 per cent as against 6.59 per cent of the previous year, showing a marked improvement in the performance on this front. The net NPAs stood at Rs 242.65 crore as against Rs 367.13 crore last year.

The financial results announced by the bank for the year ended 31 March 2003, however, do not include the effect of proposed amalgamation of IndusInd Enterprises and Finance Limited, which is a debt-free company having a net worth of Rs 119.67 crore as of 31 March 2002 with the bank.

The Bank has aggressively expanded its network of distribution points to strengthen its retail thrust. During the year, the total outlets increased from 77 to 127. The bank plans to expand both organically and through selective acquisitions and intends opening a substantial number of outlets in the near future.