Private sector lender IndusInd Bank on Tuesday posted 33% rise in net profit to ₹1,309 crore for December quarter, driven by a strong growth in net interest income. But shares fell as provisions and contingencies for bad loans jumped to ₹1,043 crore, as compared to ₹606 crore in the year earlier quarter.
IndusInd Bank shares ended 4% lower at ₹1481 on BSE. Prima facie, the numbers look good but fell because of slippages, said Santosh Meena, senior analyst at TradingBells.
Net NPA rose to 1.05% of total advances as against 0.59% in the year-ago quarter.
Net interest income (Nll) for the quarter jumped to ₹3,074 crore as against Rs.2,288 crore in the corresponding quarter of the previous year, registering a robust growth of 34%.
Commenting on the performance, Romesh Sobti, Managing Director & CEO, Induslnd Bank said,"During Q3 FY-20, the Bank witnessed a healthy growth in its topline as well as in operating profits. The Bank also reached a milestone as the Balance Sheet footage crossed Rs.3 trillion and the Advances crossed the Rs. 2 trillion mark. Provision coverage ration has increased to 53% to strengthen the Balance Sheet."
Highlights of IndusInd Bank Q3 results:
Net Interest Income (Nll) for the quarter rose to ₹3,074 crore as against ₹2,288 crore in the corresponding quarter of the previous year, registering a growth of 34%
Non-interest Income for the quarter jumped 22% to Rs.1,790 crore
Total advances as on December 31,2019 stood at ₹2,07,414 crore as compared to ₹173,169 crore on December 31, 2018, recording a growth of 20%.
Total deposits rose to ₹2,16,713 crore in December quarter, a growth of 23%
Net NPA as on December 31, 2019 is at 1.05% as against 0.59% on December 31, 2018