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Shares of IndusInd Bank on Tuesday jumped nearly 14 per cent in early trade after the company reported its March quarter earnings.
On Monday, post trading hours, IndusInd Bank reported a 12.31 per cent dip in its consolidated profit after tax at Rs 315.25 crore for the quarter ended March 2020, due to an increase in loan loss provisions.
Its overall provisions jumped to Rs 2,440 crore, as against Rs 1,560 crore in the year-ago period, which dented the bottomline the most.
The scrip zoomed 11.56 per cent to Rs 454.45 on the BSE. At the National Stock Exchange (NSE), it rose sharply by 13.81 per cent to Rs 463.70.
On a standalone basis, the net profit fell 16.17 per cent to Rs 301.84 crore during the January-March quarter, as against Rs 360.10 crore in the year-ago period.
The bank’s newly appointed Chief Executive and Managing Director Sumant Kathpalia said the provisions included a floating provision of Rs 260 crore for Covid-19 related impact on asset quality, and Rs 23 crore for accounts which are unrecognised as non-performing assets, according to a RBI direction during the pandemic period.
Its overall gross non-performing assets (NPA) ratio jumped to 2.45 per cent of total assets as against 2.10 per cent in the year-ago period on a consolidated basis.
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