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  1. IndusInd Bank Q4 Results 2018: Gross NPAs rises 61% as RBI strikes with Rs 1,350 crore divergence

IndusInd Bank Q4 Results 2018: Gross NPAs rises 61% as RBI strikes with Rs 1,350 crore divergence

IndusInd Bank Q4 Results 2018: India's sixth-largest private sector lender IndusInd Bank reported a steep rise of more than 61% in the gross NPAs for the quarter and fiscal year ended 31 March 2018 as the Reserve Bank of India pointed out a divergence of Rs 1,350 crore in the gross bad loans as on 31 March 2017.

By: | Published: April 19, 2018 2:51 PM
IndusInd Bank Q4 Results 2018: IndusInd Bank said that total profit for the financial year 2017-2018 rose by 25.74% to Rs 3,605.99 crore. (Image: Reuters)

IndusInd Bank Q4 Results 2018: India’s sixth-largest private sector lender IndusInd Bank reported a steep rise of more than 61% in the gross NPAs for the quarter and fiscal year ended 31 March 2018 as the Reserve Bank of India pointed out a divergence of Rs 1,350 crore in the gross bad loans as on 31 March 2017. The mid-sized private sector lender IndusInd Bank posted a rise of 26.8% on a yearly basis in the net profit to Rs 953.09 crore for the January-March period of the financial year 2017-2018 while the total profit of IndusInd Bank grew by 1.8% on a sequential basis.

IndusInd Bank posted a net profit of Rs 751.61 crore for the fourth quarter of FY17. IndusInd Bank said that total profit for the financial year 2017-2018 rose by 25.74% to Rs 3,605.99 crore as compared to Rs 2,867.89 crore as at the end of FY17. On the bad loans front, IndusInd Bank’s gross NPAs shot up by 61.62% to Rs 1,704.91 crore at the end of 31 March 2018 as against Rs 1,054.87 crore up until 31 March 2017. While the net NPAs of IndusInd Bank came at Rs 745.67 crore, up by 69.89%, at the end of FY18 vs Rs 438.91 crore at the end of FY17, on an absolute basis. In relative terms, gross bad loans were 1.17% of the total loans and advances, up until 31 March 2018.

The sharp spike in the bad loans was seen as the Reserve Bank of India indicated divergences of Rs 1,350.2 crore and Rs 1,001.12 crore in the gross and net NPAs (non-performing assets) while the divergence in the provisioning was Rs 349.08 crore. Following the adjustment of divergence in the provisioning, the reported profit after tax for the financial year ended 31 March 2017 reduced to Rs 2,639.62 crore as against Rs 2,867.89 crore.

Over the course of the FY18, IndusInd Bank saw an addition of 36.44% in the investments to Rs 50,076.72 crore as compared to Rs 36,702.14 crore at the end of 31 March 2017. IndusInd Bank recommended a dividend of Rs 7.5 per equity share of face value of Rs 10 for the fiscal year ended 31 March 2018 which is subject to the approval of the shareholders at the ensuing AGM of IndusInd Bank.

“For the fraud detected during the quarter in respect of a gems and jewellery borrower group, the bank has made necessary provisions in accordance with RBI guidelines,” IndusInd Bank said in a statement.

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