IndusInd Bank has received the Reserve Bank of India’s (RBI’s) nod to set up a mutual fund asset management business. It will be a wholly-owned subsidiary, the bank said in its filing to the exchanges on Monday.
RBI has also allowed the private sector lender to infuse equity capital in the asset management subsidiary, the filing said. The banking regulator on Monday informed IndusInd Bank about the development through a letter.
Shares of IndusInd bank ended at Rs 1,349.60 on the NSE on Monday, down by Rs 14.55 or 1.07% over Friday’s closing price.
IndusInd Bank had reported a consolidated profit after tax (PAT) of Rs 2,171 crore for the quarter ended June 30, 2024, which was up by 2% over Rs 2,124 crore reported by the lender in the year-ago period. The net interest income (NII) grew by 11% YoY to Rs 5,408 crore from Rs 4,867 crore in the year-ago period.
The net interest margin (NIM) was stable at 4.25% in Q1 FY25 as against 4.29% in Q1 FY24 and 4.26% in Q4 FY24.
Gross non-performing asset (GNPA) and net NPA ratios stood at Rs 2.02% and 0.60%, respectively, up from 1.94% and 0.58%, respectively, YoY while PCR was reported at 71% as of June 30, 2024.
Capital to risk-weighted asset ratio as of June 30, 2024, stood at 17.55% as compared to 18.40% of June 30, 2023.
Pre Provision Operating Profit (PPOP) stood at Rs 3,952 crore for the quarter ended June 2024, registering growth of 3% over the corresponding quarter of the previous year when it was Rs 3,831 crore. PPOP/average advances ratio for the reported quarter stood at 4.78%.
Balance sheet footage as of June 30, 2024, was Rs 5,30,165 crore as against Rs 4,66,993 crore as of June 30, 2023 — marking growth of 14%. The deposits as of June 30, 2024, were reported at Rs 3,98,513 crore as against Rs 3,47,047 crore — an increase of 15% over June 30, 2023.
