Money & Banking

IndusInd Bank Q2 profit down 53%

Our Bureau. Mumbai | Updated on October 30, 2020 Published on October 30, 2020

In the latest June quarter, IndusInd Bank delivered 64 per cent fall in net profit led by sharp rise in provisions

Private sector lender IndusInd Bank’s net profit in the second quarter of the fiscal more than halved with lower fee income and rise in provisions.

For the quarter ended September 30, 2020, IndusInd Bank registered a 53.2 per cent decline in net profit to ₹647.04 crore against ₹1,383.37 crore in the same period last fiscal.

Total income

Its total income fell by 1.64 per cent to ₹8,731.05 crore in the quarter under review from ₹8,877.02 crore a year ago.

Net interest income for the quarter ended September 30, 2020, increased by 12.7 per cent to ₹3,278 crore from ₹2,909 crore in the same period last fiscal.

Net interest margin for the second quarter was at 4.16 per cent, six basis points higher than a year ago.

However, other income fell by 10 per cent on a year-on-year basis to ₹1,553.84 crore in the quarter under review.

Provisions shot up by 166.3 per cent to ₹1,964.4 crore in the second quarter of the fiscal against ₹737.71 crore in the same period a year ago.

“As on September 30, 2020, the bank held Covid provisions of ₹2,155 crore (including provision made during the quarter at ₹952 crore),” said Sumant Kathpalia, Managing Director and CEO, IndusInd Bank.

The bank’s gross non-performing assets amounted to ₹4,532.15 crore or 2.21 per cent of gross advances as on September 30, 2020, versus 2.53 per cent as on June 30, 2020, and 2.19 per cent a year ago.

Net NPAs were at 0.52 per cent of net advances at the end of the second quarter of this fiscal compared to 1.12 per cent a year ago.

Kathpalia once again refuted reports of a possible merger of IndusInd Bank with Kotak Mahindra Bank, and said the bank and promoters have also categorically denied it.

He said that the bank focussed on balance sheet realisation in the first half of the fiscal and will focus on scaling up the business in the second half and the bank is ready for asset growth. The bank is looking to launch SME and used vehicle financing.

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Published on October 30, 2020
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