IndusInd Bank posts 49% rise in net at `1,241 cr in Q3

New Delhi: Private sector lender IndusInd Bank on Saturday reported a 49 per cent jump in its December quarter net profit to Rs 1,241.55 crore, and admitted to procedural lapses in its microlending vertical earlier during the fiscal.

The bank's chief executive and managing director Sumant Kathpalia said an investigation into a whistleblower complaint on November 6 has revealed procedural lapses in lending practices in the microfinance book, but stressed that it will not lead to any financial hit.

The external review report submission and deliberations will be completed in the next fortnight, he said, making it clear that accountability will be fixed on erring staffers.

For the reporting quarter, the bank's core net interest income rose 11 per cent to Rs 3,793 crore, on the back of a 10 per cent growth in advances and a 0.02 per cent narrowing in net interest margin to 4.10 per cent.

The total fee income rose 14 per cent to Rs 1,877 crore while deposits jumped 19 per cent. Overall provisions came at Rs 1,654 crore as against Rs 1,853 crore in the year-ago period, while the gross non performing assets ratio improved to 2.48 per cent as against the quarter-ago period's 2.77 per cent.