IndusInd Bank Q3 Results: Net Profit Falls On Higher Provisions
IndusInd Bank Ltd. saw its net profit fall as provisions increased.
Net profit of the private sector declined 36.5% year-on-year to Rs 830.39 crore in the three months ended December, according to an exchange filing. That compares with the Rs 833.6-crore consensus estimate of analysts tracked by Bloomberg.
Its net interest income, or core income, however, rose 11% year-on-year to Rs 3,406 crore, against the Rs 3,276.7-crore forecast. Other income stood at Rs 1,645.78 crore, down 8% over the year-ago period.
The lender’s gross non-performing asset ratio as on Dec. 31 stood at 1.74% compared with 2.21% in the July-September quarter. Its net NPA ratio stood at 0.22%, down 30 basis points sequentially.
Had the Supreme Court’s freeze on classifying accounts overdue for more than 90 days as bad loans not been there, the bank’s proforma gross NPA would be at 2.93% against 2.32% in the July-September quarter. Proforma net NPA for the quarter stood at 0.7% against 0.61% in the preceding three months.
Total provisions for the reported quarter increased 77.6% over the year earlier to Rs 1,853.52 crore.
Shares of IndusInd Bank closed 5.4% higher before the results were announced compared with a 1.32% drop in the benchmark Nifty 50.