IndusInd Bank advanced 2.02% to Rs 995.35 after the bank's standalone net profit jumped 111.7% to Rs 974.95 crore on a 7.8% rise in total income to Rs 9,355.77 crore in Q1 June 2021 over Q1 June 2020.
Standalone profit before tax surged 113.6% to Rs 1,286.54 crore in Q1 June 2021 as against Rs 602.45 crore in Q1 June 2020. The Q1 earnings was declared after market hours yesterday, 27 July 2021.
The bank's gross non-performing assets (NPAs) grew 21.31% to Rs 6,185.76 crore as on 30 June 2021 as against Rs 5,098.95 crore as on 30 June 2020. The ratio of gross NPAs to gross advances stood at 2.88% as on 30 June 2021 as against 2.53% as on 30 June 2020. The ratio of net NPAs to net advances stood at 0.84% as on 30 June 2021 as against 0.86% as on 30 June 2020.
Provision and Contingencies contracted 18.36% to Rs 1,844.02 crore in Q1 June 2021 over Rs 2,258.88 crore in Q1 June 2020. Provision coverage ratio stood at 72% at 30 June 2021.
During the quarter, India was hit by a "second wave" of COVID-19, with a significant surge. In cases following the spread of mutant coronavirus strains leading to business activities remaining curtailed for the months of April 2021 and May 2021. The second wave has started to subside from June 2021 onwards following which there has been a gradual lifting of lockdowns, resulting in an increase in economic activity.
Net Interest Income (NII) for the quarter ended 30 June 2021 was at Rs 3,564 crore, rising 8% from Rs 3,309 crore for the quarter ended 30 June 2020. Net Interest Margin (NIM) for Q1 FY22 stood at 4.06% from 4.28% for Q1 FY21 due to lower credit offtake ard surplus liquidity placed under repo with RBI.
Deposits as on 30 June 2021 were at Rs 2,67,233 crore as against Rs 2,11,265 crore in 30 June 2020, registering an increase of 26%. Advances as on 30 June 2021 were at Rs 2,10,727 crore as compared to Rs 1,98,069 crore in 30 June 2020.
Commenting on the Q1 performance, Sumant Kathpalia, the managing director and chief executive officer (CEO) of IndusInd Bank, said "The bank has followed conservative provisioning approach with net NPA of 0.84% and a surplus provision of Rs 2,050 crore outside this for contingencies if any. We expect the economic recovery to gain traction as the second wave recedes coupled with the ongoing vaccination drive. The bank is well positioned to cautiously participate in the economic recovery."
IndusInd Bank caters to the needs of both consumer and corporate customers. As of 30 June 2021, the IndusInd Bank's distribution network included 2,015 branches and banking outlets and 2,870 onsite and offsite ATMS across 760 geographic locations, as against 1,911 branches and banking outlets and 2,721 onsite and offsite ATMs across 751 geographic locations as of 30 June 2020.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
