Money & Banking

IndusInd Bank Q1 profit gets a boost from Bharat Fin, jumps 38%

Our Bureau Mumbai | Updated on July 12, 2019 Published on July 12, 2019

Net NPA amounted to ₹2,380.51 crore or 1.23% compared to 0.51% a year-ago

Private sector lender IndusInd Bank has registered a 38 per cent rise in net profit for the first quarter of the current fiscal. The bank reported a net profit of ₹1,432.50 crore for the quarter ended June 30, 2019, against ₹1,035.72 crore a year-ago.

The results include the operating performance of Bharat Finance Inclusion (BFIL), which has now been merged with the bank. A statement released by IndusInd Bank said the financial results for the period ended June 30, 2019 are not comparable with the previous periods.

The lender’s net profit in the previous quarter of January- March had dropped by 62 per cent to ₹360.10 crore, largely due to its exposure to ailing Infrastructure Leasing and Finance Services (IL&FS).

“During this quarter (under review), the bank has witnessed a healthy growth in its topline as well as in operating profit and will now push forward into the subsequent quarters basis our strong belief in new opportunities, especially in rural India,” said Romesh Sobti, Managing Director and CEO, IndusInd Bank.

Its net interest income grew a robust 34 per cent to ₹2,844 crore in April-June quarter against ₹2,122 crore in the same period a year ago. The net interest margin also improved to 4.05 per cent from 3.92 per cent a year-ago.

Non-interest income for the quarter under review grew by 28 per cent to ₹1,663 crore (₹1,302 crore).

The bank’s asset quality was stable, with both gross and net non-performing assets under control. Gross NPA stood at 2.15 per cent of gross assets as on June 30, against 2.1 per cent as on March 31, and 1.15 per cent as on June 30, 2018. In absolute terms, gross NPA rose to ₹4,199.66 crore for the first quarter of the fiscal, against ₹1,740.62 crore a year-ago.

Net NPA amounted to ₹2,380.51 crore or 1.23 per cent as on June 31, compared to 0.51 per cent a year-ago.

Its provisions rose 23 per cent to ₹430.62 crore in the first quarter from ₹350.01 crore a year ago. However, it declined from ₹1,560.69 crore in the fourth quarter of last fiscal.

The bank’s scrip fell 1.98 per cent to close at ₹1,510.35 apiece on the BSE. IndusInd Bank will hold its annual general meeting on August 16.

 

 

Published on July 12, 2019

A letter from the Editor


Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.