IndusInd Bank Q3 results: Net profit falls 34% to Rs 853 crore

IndusInd Bank Q3 results: Net profit falls 34% to Rs 853 crore

NEW DELHI: Private sector lender IndusInd Bank said on Friday its standalone net profit in the December quarter stood at Rs 852.76 crore, down 34.41 per cent compared with Rs 1,300.20 in the corresponding period a year ago.

A survey of 14 brokerages by ETMarkets projected the net profits at Rs 642.77 crore.

Gross non performing assets (NPAs) for the lender dropped to 1.74 per cent of total assets while the net NPAs stood at 0.22 per cent, according to the bank. They were at 2.21 per cent and 0.52 per cent in the September quarter.

The Supreme Court has barred financial institutions top recognise any new NPAs in the wake of a pandemic due to an ongoing litigation.

“Had such an order not passed, the pro forma Gross NPA and Net NPA ratio of the bank would have been 2.93 per cent and 0.70 per cent, respectively,” IndusInd Bank said in an accounting note.

The lender said it has kept aside Rs 1,853.52 crore for contingencies during the quarter, which is significantly higher than Rs 1,043.45 crore it provided for the year-ago period.

Total interest earned during the quarter remained flat at Rs 7,241.50 crore, as against Rs 7,284.53 crore in the year-ago period.

The capital adequacy ratio was at 16.34 per cent in the third quarter of the current financial year, as against 16.55 per cent in the previous quarter. Return on assets stood at 1.07 in the quarter ended December 31, 2020, as against 0.83 in the September quarter, and 1.80 in the year-ago quarter.

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