IndusInd Bank reported a 34.4 per cent drop in its standalone net profit in the third quarter of the fiscal to ₹852.76 crore as against ₹1,300.2 crore in the same period a year ago.

For the quarter ended December 31, 2020, its net interest income rose by a robust 10.8 per cent to ₹3,406.1 crore as compared to ₹3,074.02 crore in the same period last fiscal. Net Interest Margin for the quarter was 4.12 per cent.

Other income however, declined to ₹1,705.46 crore in the October to December 2020 compared to ₹1,789.40 crore a year ago. Provisions surged by 77.6 per cent to ₹1,853.52 crore in the third quarter of the fiscal as against Rs ₹1,043.45 crore a year ago.

Gross non performing assets stood at 1.74 per cent and net NPAs amounted to 0.22 per cent as on December 31, 2020 versus 2.18 per cent and 1.05 per cent respectively as on December 31, 2019. Asset quality was stable.

The pro forma gross NPA would have been at 2.93 per cent and the pro forma net NPA after considering provisions allocated would have been 0.70 per cent. The restructuring pursuant to RBI resolution framework stands at 0.60 per cent of advances as at December 31, 2020. The bank improved the Provision Coverage Ratio to 87 per cent as on December 31, 2020 from 53 per cent as on December 31, 2019.

“Loan growth was strong in areas of domain expertise and helped increase our net interest income 11 per cent year on year. The bank has conservatively built strong Provision Cover at 87 per cent resulting in a net NPA of just 0.22 per cent with total provisions (comprising specific, floating, general and standard assets provisions) being 188 per cent of the gross NPA as on December 31, 2020. We now look forward to a more secular growth profile going forward,” said Sumant Kathpalia, Managing Director and CEO, IndusInd Bank.

Related Topics
comment COMMENT NOW