IndusInd Bank has tied up with a housing finance company (HFC) to originate and distribute mortgages for a fee. Under this agreement, the borrowers would be customers of the bank while being in the books of HFC.
Currently, home and personal loan together account for just Rs 227 crore (1 per cent of book worth i.e. Rs 11,614 crore) of the bank’s consumer finance portfolio.
For the quarter ended in March 31, 2011, IndusInd Bank’s net profits increased 75 per cent (Rs 172 crore), from Rs 98 crore of last financial year. For the last financial year, net profit increased by 65 per cent to Rs 577 crore (from Rs 350 crore).
During the current financial year the bank is looking to boost up its loan to used commercial vehicle domain. The bank has also received RBI license for opening currency chests. The existing investment banking business and the credit card business acquired from Deutsche Bank along with the new initiatives would add to the fee income the next fiscal.
Mr. Romesh Sobti, Managing Director, IndusInd Bank said that the bank is expecting fee income to thus rise to 35 % of the total income.