India Earnings Season: ING Vysya Bank uses the gap, Indusind builds on

Footbridge on the Indus River, Pakistan
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ING Vysya used the gap in under performing Q1 results to come back with a vengeance. The bank scored early with 20% yoy growth in NII to INR 304 crores or $61 mln after a slow Q1. Both ING and IndusInd improved over Q1 NIMs to 3.35% ING claims it is growing advances 5% higher than industy\ry rate, this year at 23% IndusInd outgrew ING with $84 mln in NII (INR 419 crores) and added $42 mln in Fee income (INR 212 crores)

ING’s centralisd Risk management makes it maintain 85% Provisional Coverage on its Loans compared to a high 70% target briefl introduced by RIBI last year to create a contingent facility foor rising bad debt ING Vysya maintains a CASA ratio in the 30s, coming down to 32% this quarter and under pressure for the rest of the high interest regime period. IndusInd on the other hand has joined hands in the Consumer Finance boost strategy claiming to have turned around its DB Credit card portfolio and adding fee income from reference income for HDFC home and car loans

IndusInd has also grown the TRansaction services feee basket this quarter smartly to keep its 30% growth circle, ING in the meantime has grown profits on a larger asset base from $20 mln in June to a 20% higher $23 mln or INR 1.15 bn this quarter Indus Ind net is almost double at INR 1.93 bln or $39 mln based on a higher contribution from fee lines and Transaction services 

Both banks have also tied down their Net NPAs to 0.31% in the quarter.  

IndusInd has an Advance book of INR 301 bln and is growing fee income by 30%(on year) comparing favorably with the larger network of Vysya in assets and outperforming on the new equations in Fee Income and Consumer Finance

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