IndusInd Bank on Thursday reported a rise of 25% in Q3 net profit to Rs 936 crore in the October-December quarter on a yearly basis for the financial year 2017-2018 while the net NPAs (non-performing assets) saw an increase of 10% in three months.
The prominent private sector lender IndusInd Bank reported a net profit of Rs 936.25 crore, up by 24.72% from Rs 750.64 crore in the third quarter of the financial year 2016-2017. The total income of IndusInd Bank grew 16.05% to Rs 5,473.54 crore for the quarter ended 31 December 2017. The bank reported a net inc0me of Rs 4,716.13 crore in the same period a year earlier.
IndusInd Bank asset quality worsened in the third quarter with gross NPA ratio rising to 1.16% in October-December period from 1.08% in the July-September quarter. IndusInd Bank’s net NPA saw a marginal rise of 0.46% in the third quarter from 0.44% in the preceding quarter. In absolute terms, gross NPA rose to Rs 11.4% to Rs 1,498.7 crore in the fiscal third quarter from Rs 1,345.28 crore in the second quarter for the financial year 2017-2018 while the net NPAs rose 10.3% to Rs 5,922 crore from Rs 5,368.9 crore.
Despite a rise in the bad loans of IndusInd Bank, the provisioning of the private sector lender saw a decline of 19.6% to Rs 2,361.6 crore in the third quarter as compared to Rs 2,937.5 crore in the second quarter for the financial year 2017-2018.
Commenting on the performance, IndusInd Bank MD & CEO Romesh Sobti said: “The bank has continued to show a steadfast performance again in this quarter. All vectors for both topline and bottom line have progressed as per plan. We have maintained a stable quality loan book.” The net interest margin of IndusInd Bank stood at 3.99% for the current quarter as against 4% in the corresponding quarter of the previous year.
Following a decrease in the asset quality of IndusInd Bank, shares of IndusInd Bank dived over 2%. The stock of IndusInd Bank tumbled 2.54% to the day’s low of Rs 1,690.55. IndusInd Bank shares opened marginally higher at Rs 1740, up by 0.3% in the morning trades on BSE.