IndusInd Bank net profit down 37% to Rs 830 crore in December quarter

Private lender IndusInd Bank saw a 37 per cent fall in net profit to Rs 830 crore in the third quarter ended December 2020 on higher provisions and contingencies. It had posted a net profit of Rs 1,309 crore in the quarter ended December 2019.

IndusInd Bank’s stock clos­ed 5.44 per cent higher at Rs 846.25 crore on the BSE on Friday. Net interest income (NII) in the reporting quarter went up by 11 per cent to Rs 3,406 crore from Rs 3,074 crore in December 2019. Net interest margin for Q3 of FY21 was at 4.12 per cent against 4.15 per cent in Q3 of FY20.

Other income declined by eight per cent to Rs 1,646 crore in Q3 of FY21 from Rs 1,790 crore in Q3 of FY20.

Provisions and contingencies rose by 78 per cent to Rs 1,854 crore from Rs 1,044 crore.

In a statement, the bank said pursuant to an order by the Supreme Court, no new non-performing asset (NPA) was recognised since Sept­ember 1, 2020. 

If such NPAs were recognised, the pro forma gross NPA would have been at 2.93 per cent and the pro forma net NPA, after considering provisions allocated, would have been 0.70 per cent.

The resultant pro forma provision coverage ratio (PCR) is 77 per cent. Loan book quality was stable. 

Total loan-related provisions stood at 111 per cent of pro forma GNPAs, according to investor presentation.