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Private sector IndusInd Bank reported a 32 per cent increase in net profit in the third quarter of the fiscal, but its provisions surged and asset quality remains a concern. The lender reported a robust net profit of ₹1,300.20 crore for the October to December 2019 quarter against ₹985.03 crore in the same period a year ago.
Total income
The total income of the bank rose by 25.4 per cent to ₹9,073.93 crore in the third quarter of the fiscal against ₹7,232.32 crore a year ago.
Net interest income for the quarter rose by 34 per cent to ₹3,074 crore against ₹2,288 crore in the corresponding quarter of the previous year. The bank posted non-interest income of ₹1,790 crore against ₹1,469 crore in the corresponding quarter of the previous year.
Romesh Sobti, Managing Director and CEO, IndusInd Bank, in his last presentation before retirement, said: “During the third quarter of the fiscal, the bank witnessed a healthy growth in its topline as well as in operating profits. Provision coverage ratio has been increased to 53 per cent to strengthen the balance sheet.”
The bank’s provisions rose to ₹1,043.45 crore in the third quarter of the fiscal, from ₹606.68 crore a year ago. Gross non-performing assets (NPAs) rose to 2.18 per cent of the gross advances at the end of December quarter of the current fiscal against 1.13 per cent at the end of the same period a year ago. Net NPAs increased to 1.05 per cent in the quarter from 0.59 per cent of the total assets in the year-ago period.
Loans to NBFCs (other than housing finance companies and MFIs) were down at 3.2 per cent of the total loan book at the end of December 31, 2019, against 3.7 per cent in the previous quarter.
The bank’s scrip fell 3.85 per cent to close at ₹1,481.10 apiece on the BSE on Tuesday.
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