IndusInd Bank to cut base rate next week

IndusInd Bank to cut base rate next week

 IndusInd Bank is likely to announce a cut in its base rate next week, according to its managing director and chief executive officer Ramesh Sobti.

“The cost of deposits have fallen and we will be shortly announcing a reduction in base rates. The asset liability committee (ALCO) has decided to move it and we should be announcing the cut next week,” Sobti said.

When asked as to what the quantum of cut could be, the CEO declined to comment.
As far as further  fund raising is concerned, Sobti said that the bank has no immediate plans.

“We do not have any capital raising plans for the next three years,” Sobti said. IndusInd Bank had raised Rs 4,327.98 crore via qualified institutional placement in July 2015, and Rs 752.74 crore via a preferential issue in August 2015.

Meanwhile, IndusInd Bank has reported a 30 per cent increase in net profit for the
second quarter ended September 30, 2015, at Rs 560.04 crore, as against Rs 430.20 crore in the same period last year.

Net interest income for the bank grew 31 per cent to
Rs 1,094.28 crore compared with  Rs 833.11 crore in the second quarter of the previous fiscal.

Asset quality of the bank

was stable during the quarter with gross non-performing assets (NPAs) at 0.77 per cent as against 0.79 per cent last year and net NPAs unchanged
at 0.31 per cent (YoY).

Kindest corners

The asset liability committee of the bank will announce the cut next week

 The CEO clarified that the bank will not go for any capital raising for the next three years

 IndusInd Bank had raised Rs 4,327.98 crore via QIP in July 2015 and Rs 752.74 crore via a preferential issue in August 2015.




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