Mumbai, Jan 17 (Agencies): IndusInd Bank's net profit for the December quarter shot nearly 75 per cent to Rs 153.86-crore on the back of a healthy rise in both interest and fee incomes.

The Mumbai-headquartered bank was also able to widen its net interest margin (NIM) to 3.61 per cent from the 2.94 per cent in the corresponding period last year in spite of difficult market conditions arising from a prolonged period of rate hikes.

This was made possible by repricing of the loan-book, higher yields on advances at 12.31 per cent and containing the rate hike impact on cost of deposits which grew marginally to 6.17 per cent, the bank's Managing Director and Chief Executive, Romesh Sobti, told reporters here today.

The bank's NIMs will continue to expand in a sustained manner for "eight to ten quarters", he added. In October-December 2010, the bank's net interest income grew 53 per cent to Rs 237.70-crore while the core fee income, which comprises of income from forex operations, investment banking and distribution, was up 54 per cent at Rs 111.29-crore.
The share of the cheaper CASA (current and savings account) deposits also grew to 26.79 per cent during the quarter from 22.54 per cent, helping the NIMs. Advances were up 31 per cent with those to corporates  growing 28 per cent and consumer finance like vehicle loans
being up by 36 per cent.