Q4 results: NPA divergence a blip for IndusInd Bank; stock falls over 2%

Business performance, outlook healthy; gains from Bharat Financial acquisition to reflect in second half

After the March 2018 quarter (Q4) result, the IndusInd Bank stock fell over 2 per cent intra-day, mainly because of the divergence of Rs 13.5 billion in non-performing assets (NPA) reported by the bank pertaining to FY17. 

NPA divergence is the difference between gross NPA reported by the bank and those assessed by the RBI. This divergence also affected the bank’s asset quality indicators to some extent. 

Having said that, most analysts are positive on the stock and expect it to be in the green soon.  Not surprising then, the stock closed just 0.6 per cent lower.

“The history of strong performance, satisfactory