IndusInd Bank Profit Drops 68% To Rs 461 Crore In June Quarter
IndusInd Bank's provisions and contingencies came in at Rs 2,258.88 crore in the April-June period
IndusInd Bank on Tuesday reported a 67.84 per cent drop in net profit to Rs 460.64 crore for the quarter ended June 30. In a regulatory filing after market hours, the country's sixth largest private sector lender said its total income from operations stood at Rs 8,680.92 crore in the first quarter of current financial year, marking an increase of 0.65 per cent compared to the corresponding period a year ago. (Track IndusInd Bank Shares Here)
Total interest earned increased 2.88 per cent on a year-on-year basis to Rs 7,161.73 crore, Pune-based IndusInd Bank said.
Its net interest income - or the difference between interest earned and interest expended, came in at Rs 3,309.19 crore. That was up 16.36 per cent compared to the year-ago period.
Its asset quality worsened in the April-June period compared to the previous quarter. IndusInd Bank's gross non-performing assets - or bad loans - as a percentage of total loans were at 2.53 per cent in the first quarter of financial year 2020-21, as against 2.45 per cent in the previous quarter, and 2.15 per cent in the quarter ended June 30, 2019.
Net NPAs, however, came down 28.45 per cent to Rs 1,703.37 crore in the quarter ended June 30.
IndusInd Bank's provisions and contingencies grew more than five times to Rs 2,258.88 crore compared to the year-ago period.
The bank's operating profit before provisions and contingencies increased 10.44 per cent to Rs 2,861.33 crore.
IndusInd Bank said the extent to which the coronavirus pandemic will impact its operations and financial results depends on future developments, which are highly uncertain.
Shares in IndusInd Bank ended 4.05 per cent higher at Rs 526.90 apiece on the BSE, outperforming the benchmark S&P BSE Sensex index which climbed up 1.47 per cent, ahead of the earnings announcement.