Net interest income, the difference between interest earned and interest expended, grew by 34.35 percent year-on-year to Rs 3,074 crore.
Private sector lender IndusInd Bank on January 14 registered a healthy 32 percent year-on-year growth in profit after tax despite higher provisions.
The growth was driven by strong net interest income, other income and operating profit. The lower tax expenses (down 23.5 percent YoY) also boosted profitability.
Profit during the quarter stood at Rs 1,300.2 crore, increased sharply from Rs 985.03 crore in the same period last year.
Net interest income, the difference between interest earned and interest expended, grew by 34.35 percent year-on-year to Rs 3,074 crore, with loan growth of 20 percent.
Asset quality improved in the quarter ended December 2019 with gross non-performing assets (NPA) falling to 2.18 percent in Q3 (from 2.19 percent QoQ). Net NPA also declined to 1.05 percent during the quarter against 1.12 percent in the previous quarter.
But slippages increased significantly to Rs 1,945 crore in Q3, from Rs 1,102 crore in Q2FY20.
Provisions and contingencies for the quarter stood at Rs 1,043.4 crore, which increased sharply by 41.4 percent sequentially and 72 percent year-on-year.
Other income (non-interest income) shot up 22 percent year-on-year to Rs 1,789.40 crore and operating profit grew by 29.7 percent to Rs 2,745.64 crore in Q3FY20.The stock reacted positively to earnings, rising more than 2 percent, but wiped out all gains due to higher slippages QoQ.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.