Mumbai, Apr 24 (PTI) Private sector lender Indusind Bank on Friday reported a net profit of Rs 594 crore for the March quarter, and aims to be at par with the industry on loan growth in FY27.
The lender had reported a loss of Rs 2,329 crore in the year-ago period.
The new management under managing director and chief executive Rajeev Anand said the issues of the past arising from undeclared losses in derivatives and other shortcomings are behind it, and it would like to grow loans and deposits at par with the banking industry in FY27.
"We transition to a growth mindset in FY27," Anand said, pointing out that the bank's efforts till now have been focused on rebuilding the institution, which would also mean consolidating the loan book.
Its advances de-grew by nearly 8.5 per cent as against the nearly 16 per cent growth in the industry, and deposits de-grew by 2.66 per cent as against a nearly 13.5 per cent growth in the system.
Anand said the bank has all the right ingredients for meeting its aim of transitioning to system-level growth, including a strong franchise, processes, investments, network and has also completed a leadership team building over the last few months.
In the microfinance segment, which was one of the pain points, Anand said the disbursement rate is now at par with the collections, and the bank is confident of a calibrated growth in FY27.
From an asset quality perspective, it reported an improvement in the gross non-performing assets ratio at 3.43 per cent at the end of March as against 3.56 per cent in the quarter-ago period.
The gross slippages have reduced to Rs 1,825 crore from Rs 2,560 crore in the quarter-ago period, while the provisions reduced to Rs 1,482 crore from Rs 2.095 crore in the same period.
The net interest margin compressed to 3.39 per cent from 3.52 per cent in the quarter-ago period.
Stating that the bank has sufficient capital to support loan growth, Anand said the overall capital adequacy stood at 17.48 per cent with the core buffer at 16.2 per cent.
Anand said the bank is adopting artificial intelligence in a big way and has trained 9,000 staffers to use generative AI tools.
Terming AI as a core strategic priority, Anand announced that it is investing in creating an AI centre of excellence to try Gen AI adoption at scale.
On the West Asia war, Anand said there are certain segments in the mid-corporate and SME space that are vulnerable, but overall India Inc has sufficient buffers, cash and low leverage to withstand the crisis and keep servicing debt obligations.
The bank announced the elevation of wholesale banking group head Ganesh Sankaran and consumer banking head Jagdeep Mallareddy as whole-time directors on its board.
The Indusind Bank scrip closed 1.41 per cent down at Rs 848.30 a piece on the BSE on Friday, as against a correction of 1.29 per cent on the benchmark.