RBI Okays IndusInd Bank To Set Up Mutual Fund Asset Management Business

IndusInd Bank has got approval from the Reserve Bank of India (RBI) to establish a mutual fund asset management business, which will operate as a wholly-owned subsidiary, the bank announced in its exchange filing on Monday.

The RBI has also permitted the private lender to inject equity capital into the asset management subsidiary, according to the filing. The banking regulator informed IndusInd Bank of this development via a letter on Monday.

On the same day, IndusInd Bank's shares closed at Rs 1,349.60 on the NSE, a decline of Rs 14.55 or 1.07 per cent compared to Friday's closing price.

For the quarter ending 30 June 2024, IndusInd Bank reported a consolidated profit after tax (PAT) of Rs 2,171 crore, reflecting a 2 per cent increase from the Rs 2,124 crore profit posted in the same period the previous year. The bank's net interest income (NII) grew by 11 per cent year-on-year to Rs 5,408 crore, up from Rs 4,867 crore.

The net interest margin (NIM) remained steady at 4.25 per cent in Q1 FY25, compared to 4.29 per cent in Q1 FY24 and 4.26 per cent in Q4 FY24.

The bank's gross non-performing asset (GNPA) and net NPA ratios increased slightly to 2.02 per cent and 0.60 per cent, respectively, from 1.94 per cent and 0.58 per cent year-on-year, while its provision coverage ratio (PCR) stood at 71 per cent as of 30 June 2024.

The capital to risk-weighted asset ratio (CRAR) was recorded at 17.55 per cent as of 30 June 2024, down from 18.40 per cent on the same date last year.