IndusInd Bank shares ended 4% lower at  ₹1481 on BSE
IndusInd Bank shares ended 4% lower at 1481 on BSE

IndusInd Bank net profit jumps 33%, but shares fall 4% as provisions spike

  • IndusInd Bank's net interest income (Nll) for the quarter rose to 3,074 crore
  • Net NPA rose to 1.05% of total advances as against 0.59% in the year-ago quarter

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


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