Game of loans: Investors reward IndusInd Bank's clean-up act

MD says much of the exposure may be recovered via asset sale; Q4 largely satisfactory sans IL&FS impact

Investors upset with the IndusInd Bank stock, which has underperformed peers in the past one month, have reasons to cheer after the bank clarified its position on asset quality troubles that have emerged lately. 

This is shares of IndusInd Bank rose about 5 per cent on Wednesday, despite the lender’s net profit falling 62 per cent year-on-year (YoY) to Rs 360 crore in the March quarter (Q4). Following the diktat of the Reserve Bank of India, IndusInd Bank classified its Rs 3,000-crore exposure to the beleaguered IL&FS group as non-performing assets (NPA) in Q4.

This impacted net interest income (NII) — down