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IndusInd Bank Q2 profit jumps 72% to Rs 1,114 crore; provisions, NPAs decline

Net interest income grew by 11.6 percent to Rs 3,658.40 crore compared to the year-ago period

October 27, 2021 / 06:17 PM IST
 
 
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Private sector lender IndusInd Bank on October 27 reported a 72.1 percent year-on-year (YoY) growth in standalone profit at Rs 1,114 crore in the quarter ended September 2021, with a drop in bad loans provisions and non-performing assets (NPAs). Higher other income and operating profit also supported profitability.

Standalone profit in the corresponding period of the last fiscal was at Rs 647.04 crore.

Net interest income, the difference between interest earned and interest expended, grew by 11.6 percent to Rs 3,658.40 crore from the year-ago quarter. "Net interest margin fell by 9 bps YoY to 4.07 percent in Q2 mainly due to surplus liquidity placed under repo with RBI," said the bank.

The bank further said loan book grew by 10 percent YoY (5 percent QoQ) to Rs 2.21 lakh crore and deposits rose by 21 percent YoY (3 percent) to Rs 2.75 lakh crore in the quarter ended September 2021 including retail deposits and deposits from small business customers of Rs 1.11 lakh crore.

Asset quality has seen some improvement on sequential basis, with gross non-performing assets as a percentage of gross advances falling 11 bps QoQ to 2.77 percent and net NPAs declined 4 bps to 0.80 percent as of September 2021, said the bank in its BSE filing.

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Provisions and contingencies during the quarter at Rs 1,703.36 crore lowered by 13.3 percent year-on-year and were down by 7.6 percent quarter-on-quarter.

Net interest income (other income) increased 18.2 percent to Rs 1,837.20 crore in the quarter ended September 2021 as core fee income grew by 42 percent YoY to Rs 1,506 crore in Q2. Pre-provision operating profit rose 12.2 percent to Rs 3,174 crore compared to year-ago period.

The stock settled at Rs 1,135.10 today, falling 1.69 percent ahead of earnings.
Moneycontrol News
first published: Oct 27, 2021 05:11 pm

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