The private lender's net profit tanked 34.4% to Rs 852.76 crore and total income fell 1.4% at Rs 8,946.96 crore in Q3 December 2020 over Q3 December 2019.
Profit before tax (PBT) dropped 34.22% to Rs 1,119.76 crore in Q3 FY21 as against Rs 1,702.19 crore in Q3 FY20. Tax expense declined 33.58% to Rs 267 crore in Q3 FY21 over Q3 FY20. The result was announced after market hours today, 29 January 2021.The private sector bank's operating profit before provisions increased by 8.29% to Rs 2973.28 crore in Q3 FY21 from Rs 2745.64 crore in Q3 FY20.
The bank's provisions and contingencies jumped 77.63% to Rs 1853.52 crore in Q3 FY21 as against Rs 1043.45 crore in Q3 FY20. The bank has made regulatory, floating, counter cyclical and/or contingent provisions, taking the total amount of such provisions to Rs 3,261 crore as of 31 December 2020, including an amount of Rs 400 crore in respect of borrower accounts restructured in accordance with Resolution Framework for COVID-19 related stress. The provisions held by the bank are higher than the provision required under the RBI framework.
On the asset quality side, gross non-performing assets (NPAs) stood at Rs 3650.66 crore as on 31 December 2020 as against Rs 4532.15 crore as on 30 September 2020 and Rs 4578.43 crore as on 31 December 2019. The ratio of gross NPAs to gross advances stood at 1.74% as on 31 December 2020 as against 2.21% as on 30 September 2020 and 2.18% as on 31 December 2019. The ratio of net NPAs to net advances stood at 0.22% as on 31 December 2020 as against 0.52% as on 30 September 2020 and 1.05% as on 31 December 2019.
The Supreme Court of India, vide an interim order dated 3 September 2020, directed banks that the accounts which were not declared NPA till 31 August 2020 shall not be declared as NPA till further orders. Accordingly, the bank has not declared any account as NPA that was not an NPA as of 31 August 2020. Had such an order was not passed, the proforma gross NPA and net NPA ratio of the bank would have been 2.93% and 0.70% respectively.
IndusInd Bank's Capital Adequacy Ratio improved to 16.34% as of 31 December 2020 from 13.92% on 31 December 2019.
Shares of IndusInd Bank jumped 5.44% to Rs 846.25. IndusInd Bank caters to the needs of both consumer and corporate customers.
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