IndusInd Bank, which commenced its operations in 1994, is one of the new generation private sector banks. emerged as one of the leading players in new commercial vehicle financing business, following the merger of Ashok Leyland Finance with the bank in June 2004.
The bank drives its business through technology. It has a robust technology platform supporting multi-channel delivery capabilities. It has multi-lateral tie-ups with other banks providing access to their ATMs for its customers. It enjoys clearing bank status for both major stock exchanges - BSE and NSE - and three major commodity exchanges in the country - MCX, NCDEX, and NMCE. The Bank has been bestowed with the mandate of being a Settlement Banker for six tea auction centres.
The bank derives its name and inspiration from the Indus Valley civilisation -a culture described by National Geographic as ‘one of the greatest of the ancient world’ combining a spirit of innovation with sound business and trade practices. Mr. Srichand P. Hinduja, a leading Non-Resident Indian businessman and head of the Hinduja Group, conceived the vision of IndusInd Bank and through collective contributions from the NRI community towards India’s economic and social development, brought it into being. The Bank, started with a capital base of Rs. 100 crore.
The bank has been reporting robust performance for several quarters in a raw. For September 2011 quarter, net total income increased by 30 per cent to Rs. 658.40 crore and net profit by 45 per cent to Rs. 193.09 crore. The net interest margin was a healthy 3.41 per cent, which the management expects to sustain. The gross NPA stood at 1.09 per cent and the net NPA at Rs. 0.31 per cent of advances as on 30 September 2011. Restructured advances amounted to 0.3 per cent of total advances. Capital Adequacy ratio stood at 14.32 per cent with Tier I capital of 11.43 per cent and tier II capital of 2.89 per cent.
Advances grew 28 per cent y-o-y and 6 per cent q-o-q to Rs. 30135 crore. In order to achieve its objective of growth along with profitability the bank is planning to achieve a 50:50 ratio between its Consumer Finance (CF) and Corporate and Commercial Banking (CCB) loan book by FY14.
The bank has a network of 350 branches and 666 ATMs. The ratio of CASA (Current Accounts-Savings Accounts) deposits improved to 27.70 per cent from 25.44 per cent a year ago.
In 2011-12, we expect the bank to register EPS of Rs. 16.9. The share trades at Rs. 256. While P/E works out to 15.2, P/BV (on expected book value of Rs. 96.58 for 2011-12) stands at 2.84.
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