IndusInd Bank Q3 net rises 33%; asset quality worsens

By: |
Published: January 15, 2020 5:30:24 AM

The other income (non-interest income) rose by 22% to Rs 1,790 crore against Rs 1,469 crore in the same period last year.

The revenue from retail business rose 31.6% year-on-year to Rs 5,026 crore from Rs 3,819 crore.The revenue from retail business rose 31.6% year-on-year to Rs 5,026 crore from Rs 3,819 crore.

Private lender IndusInd Bank on Tuesday reported a 33% increase in its consolidated net profit at Rs 1,309 crore for the quarter ended December 31, 2019, due to a healthy growth in retail and treasury income. However, worsening asset quality and a 72% spike in provisioning are a matter of concern.

Sequentially, the net profit dropped 6% from Rs1,383.37 crore reported in Q2FY20. The bank’s net interest income (Nll) for the quarter jumped to Rs 3,074 crore against Rs2,288 crore in the corresponding quarter of the previous year, registering a growth of 34% compared to the corresponding quarter last year. The bank’s net interest margin for the quarter was at 4.15% compared with 3.89% in the comparable period last year.

The revenue from retail business rose 31.6% year-on-year to Rs 5,026 crore from Rs 3,819 crore. Treasury operations also saw a growth of 25% to Rs 1,460 crore, while revenue from corporate banking, grew by 9.3% to Rs 2,589 crore.

The asset quality of the bank worsened year-on-year as gross non-performing assets (GNPA) more than doubled to Rs 4,578 crore from Rs 1,968.15 crore in absolute terms. In percentage terms GNPAs went up to 2.18% from 1.13% a year ago. The bank’s net NPAs increased higher to 1.05% in December 2019 from 0.59% a year ago.

Sequentially, gross NPAs remained almost at same level from 2.19% to 2.18%, while Net NPAs declined from 1.12% to 1.05%. The lender’s slippages rose to Rs 1,945 crore, up 76.49 % quarter-on-quarter from Rs 1,102 crore reported in Q2FY20. The bank made provisions for Rs 1,043.45 crore, against Rs 606 crore provided for in Q3FY20, thus registering 72% growth in provisions.

The other income (non-interest income) rose by 22% to Rs 1,790 crore against Rs 1,469 crore in the same period last year. The bank’s pre-provision operating profit is also up by 30% at Rs 2,758 crore against Rs 2,117 crore during the same period last year.

Total advances as on December 31,2019, stood at Rs 2,07,414 crore as compared to Rs 173,169 crore on December 31, 2018, recording a growth of 20%.Total deposits rose to Rs 2,16,713 crore in December quarter, a growth of 23%.

“The bank witnessed a healthy growth in its top line as well as in operating profits. The bank also reached a milestone as the balance sheet footage crossed Rs 3 lakh crore and the advances crossed the Rs 2-lakh mark,” managing director and CEO Romesh Sobti said.

The provision coverage ratio stood at 53% this quarter, he added.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Next Stories
1Another PMC Bank: RBI steps in to curb withdrawal limit, assures depositors at the same time
2Bad loans: RBI finds fault with banks’ reporting to CRILC
3Banks’ third-quarter results may look up, supported by recoveries and treasury gains