Signals, Powered By EquityPandit
IndusInd Bank published their financial report for the July-September quarter with a net profit of Rs 920.25 crores, posting a 4.6% rise as compared to net profit of Rs. 880.10 crores during the corresponding quarter of the previous year, due to higher provisions and contingencies. On quarter on quarter basis, net profit declined 11.15% from Rs 1035.72 crore.
Net interest income (NII), or the earning bank earns by giving loans, was up 21% to Rs. 2203.28 crores as against Rs. 1820.99 crores from the year-ago period. Other income was substantially up by 11% and stood at Rs. 1317.28 crores versus Rs. 1187.57 crores a year ago.
Provisions and contingencies jumped by 100.94% to Rs. 590.27 crores during the quarter under review, from Rs. 293.75 crores during Q2 FY18. On a quarter-on-quarter basis, it reported a 68.64% rise from Rs. 350.01 crores. Advances for the quarter rose 32.44% to Rs 1.63 trillion whereas deposits grew 19% to Rs 1.68 trillion.
Gross non-performing assets (NPAs) stood at Rs. 1781.36 crores, rising 32.42% as compared to Rs. 1345.28 crores in the same quarter period of last year. As a percentage of total loans, gross NPAs stood at 1.09% as compared with 1.08% in the year-ago quarter. Net NPAs were at 0.48% against 0.44% a year ago.
Romesh Sobti, Chief Executive Officer of IndusInd Bank, while speaking at a press conference stated that the contingent provision was made after assessing the worst case scenario that may emerge in the course of resolution of the IL&FS’ group financial troubles.“We may not even take that much of a hit because our exposure is against very specific cash flows,” he added.
