IndusInd Q4 Results

Net interest income up 45% YoY; pre-tax profit falls 22%

IndusInd Bank's net profit rose 26 per cent for the quarter ending March. It also saw a big divergence with the Reserve Bank of India's own estimate for its non-performing assets (NPAs). Net profit rose to Rs 9.5 billion, compared with Rs 7.5 bn in the same quarter a year before. The divergence between the bank's NPA accounting and that of the central bank was Rs 10.54 bn, of which nearly Rs 5.2 bn pertains to a cement account that was repaid in July 2017. The total impact of these divergences to the gross NPA figure was Rs 1.86 bn. Gross NPAs, as a proportion of total advances, were 1.17 per cent, a marginal rise against 1.16 per cent in the December quarter. In the year-ago quarter, it was 0.93 per cent. Despite the recent fraud in the gems industry, IndusInd says it is confident on the diamond financing business, saying it is a high-yield one. "Of the two (problem accounts, of Nirav Modi and Gitanjali Gems), we only have exposure to one, a legacy ...