IndusInd Bank on Thursday reported a 17 per cent growth in its December quarter net profit to Rs 2,301 crore, helped by the higher core income.

The private sector lender had posted a net profit of Rs 1,964 crore for the October-December period of 2022.

Core net interest income grew 18 per cent to Rs 5,296 crore on the back of a 20 per cent growth in advances. Net interest margin was stable at 4.29 per cent.

Other income increased 15 per cent to Rs 2,396 crore for the reporting quarter.

At a time rivals are reporting some stress on the NIMs front, IndusInd has been able to hold on to the NIM, repricing of loans and the higher proportion of retail loans, its managing director and chief executive Sumant Kathpalia told reporters.

He said the cost of deposits for the bank rose 0.09 per cent during the quarter, while the yield on advances moved up by a higher 0.15 per cent, helping the NIMs. The bank will aim to maintain the number between 3.25-3.30 per cent.

The overall deposit growth came at a slower 13 per cent as the bank shed some bulk deposits, Kathpalia said, adding that it will aim to keep the credit-deposit ratio, which came in at 88 per cent for the quarter.

The bank is targeting an advance growth of 18-22 per cent for FY24 and also in FY25, he added.

On the asset quality front, the gross non-performing assets ratio improved slightly to 1.92 per cent against 1.93 per cent in the quarter-ago period and 2.06 per cent in the year-ago period.

Kathpalia said that there is a scope for further improvement in the number.