Millennium Post

IndusInd Bank posts 32.92% jump in Q3 net, NPAs swell

Mumbai: Private sector lender IndusInd Bank on Tuesday reported a 32.92 per cent jump in its December quarter consolidated net profit at Rs 1,309 crore on overall growth, but showed an uptick in non-performing assets.

Its core net interest income was up 34 per cent to Rs 3,074 crore on a 20 per cent loan growth and a 0.15 per cent expansion in the net interest margin to 4.15 per cent. The fee income grew 22 per cent to Rs 1,790 crore. Total income during the period under review increased to Rs 9,073.93 crore from Rs 7,232.32 crore in the third quarter of the previous fiscal, IndusInd Bank said in a regulatory filing.

The bank, first off the mark to report December quarter numbers, had to set aside extra amount of money to up its provision coverage ratio to 53 per cent from the earlier 43 per cent, that dented the bottomline.

The bank's managing director and chief executive Romesh Sobti, who is set to retire in March, said it had to provide Rs 242 crore as provision for two accounts which were classified as "fraud-hit" following reports from forensic auditors.

He explained that under the guidelines, the bank has to provide money over four quarters as provisions against frauds, and added that there is more pain in store by way of provisioning ahead.

Sobti, however, refused to share details of the accounts of the quantum of the money required to be set aside. Sources, however, identified these accounts as mortgage financier DHFL and travel company Cox and Kings. The bank reported a 76.49 per cent rise in slippages at Rs 1,945 crore as compared with the preceding September quarter.

Next Story
Share it