Private sector lender IndusInd Bank reported a 67.8 per cent drop in standalone net profit in the first quarter of the fiscal year with a surge in provisions.
For the quarter ended June 30, 2020, the bank’s standalone net profit was ₹460.64 crore against ₹1,432.50 crore a year ago.
The bank’s board also approved a proposal to raise ₹3,288 crore through a preferential issue of fully paid up 6.275 crore equity shares at a price of ₹524 per share to a set of marquee investors and the promoter. This would include ₹850 crore from ICICI Prudential Life Insurance, ₹299 crore from Hinduja Capital, and ₹493 crore from IndusInd International Holdings.
“Subsequent to the proposed capital raise, the post-issue CRAR is estimated to be 16.5 per cent,” IndusInd Bank said in a statement on Tuesday.
Meanwhile, the bank’s net interest income increased 16 per cent for the quarter ended June 30, to ₹3,309 crore from ₹2,844 crore a year ago. Net interest margin for the first quarter improved to 4.28 per cent from 4.25 per cent a year ago.
Fee income dropped to ₹1,520 crore for the first quarter of the fiscal from ₹1,663 crore a year ago.
As on June 30, the bank held Covid provisions of ₹1,203 crore (including provision made during the quarter at ₹920 crore). Total provisions for the quarter stood at ₹2,258.88 crore versus ₹430.62 crore a year ago.
The gross non-performing assets were at 2.53 per cent of gross advances as on June 30, while net NPAs stood at 0.86 per cent of net advances.