We are in talks to acquire Bharat Financial Inclusion – Romesh Sobti, IndusInd Bank

 

IndusInd Bank, which commenced operations in 1994, caters to the needs of both consumer and corporate customers. Its technology platform supports multi-channel delivery capabilities. The Bank believes in driving its business through technology. IndusInd Bank on April 1, 2013 was included in the NIFTY 50 benchmark index. In the recently released Kantar Millward Brown’s BRANDZ Top 50 most valuable Indian Brands 2017 report.

Indusind Bank provides highlights of Q2 result where Romesh Sobti, MD & CEO informed Yash Ved, Sr. Correspondent at NewsBarons that “The bank signed an exclusivity agreement with the microfinance company for a possible acquisition. The acquisition talks are still under evaluation.”

NB: How was the quarter as a whole?

Romesh: There has been steadfast performance in Q2 and maintained topline growth in mid-20s.The profit and loss has been robust in this quarter. The total business of the Bank has increased to Rs. 2,64,622 crores. The commercial vehicle loan grew by 25%. The quarter has been stronger for vehicle finance.

Digitization is giving the much needed thrust to the vision of a cashless economy, and businesses are treading classified in the same direction. Against such dynamic changes in the economy, the Bank has maintained its sustained financials with steady numbers.

Banks have adapted to the customers’ needs and are offering solutions that are need and situation based.

MD&CEO, Indusind Bank

NB: Brief us about the business highlights for the quarter?

Romesh: The Net Interest Income (NII) was Rs. 1,820.99 crores as against Rs. 1,460.31 crores in the corresponding quarter of the previous year, registering a robust growth of 25 %.

Non Interest income for the quarter was Rs. 1,187.57 crores as against Rs. 970.42 crores in the corresponding quarter of the previous year, a growth of 22 %

Core fee income for the quarter was Rs. 1,013.02 crores as against Rs. 825.57 crores in the corresponding quarter of the previous year, marking a growth of 23 %.

Net Interest Margin (NIM) was stable at 4.00% for the current quarter and the corresponding quarter of the previous year.

Total Advances as on September 30, 2017 were at Rs.1,23,181 crores as compared to Rs. 98,949 crores in the corresponding period of the previous year, recording a growth of 24%.

Total deposits as on September 30, 2017 were at Rs. 1,41,441 crores as compared to Rs. 1,12,313 crores in the corresponding period of the previous year, up by 26 %. Total Business at Rs. 2,64,622 crores.

NB: What is your mix in terms of corporate and retail?

Romesh: About 58% of our business comes from Corporate and 42% of our business comes from retail.

NB: What are your branch expansion?

Romesh: The increase in network to branches and ATMs as on 30th September, 2017 is at 1250 branches and 2146 ATMs. The company is eyeing target of 2000 branches by 2020.

NB: How was the CASA ratio in Q2?

Romesh: The CASA (Current Accounts- Savings Accounts) Ratio improved to 42.26 % against 36.53 % and Saving deposit grew by 95% Y-o-Y from 20,567 crores in September 2016 to 40,157 crores in September 2017.

We have reached CASA target of 42%. We will be in line with the target of 42% by 2019.

NB: Are you in talks with Bharat Financial Inclusion?

Romesh: The bank signed an exclusivity agreement with the microfinance company for a possible acquisition. The acquisition talks are still under evaluation.