IndusInd Bank Q3 results: Net profit rises 17.3% to Rs 2,298 crore

India's IndusInd Bank on Thursday reported a 17.3% jump in third-quarter profit, edging past estimates on the back of higher loan growth.

The bank reported a net profit of Rs 2,298 crore ($276.5 million) for the quarter ended December 31, compared to analysts' expectations of Rs 2,278 crore as per LSEG data.

IndusInd's loan disbursements grew 20% year-on-year, while deposits rose 13%.

Its net interest margin - the difference between interest obtained on loans and interest paid on deposits expressed as percentage - edged up to 4.29% from 4.27% a year ago, and was unchanged from the previous quarter.

While Indian lenders have been reporting double-digit loan growth consistently over the past few months, the cost of deposits has risen, pressuring margins.

HDFC Bank, India's top private bank, reported weak margins for a second consecutive quarter on Tuesday.

IndusInd's net interest income - the difference between interest earned and paid - rose to Rs 5,296 crore from Rs 4,495 crore a year ago.

Interest earned rose 22.3%, while provisions and contingencies, or funds set aside to cover loan losses, declined 12.3% to Rs 934 crore.