Moneycontrol
Last Updated : Jan 11, 2018 05:11 PM IST | Source: Moneycontrol.com

IndusInd Bank Q3 profit rises 25%, NII misses estimates; asset quality weakens a bit

Provisions for bad loans increased to Rs 236.2 crore from Rs 216.9 crore YoY, but declined sequentially from Rs 293.8 crore.

Private sector lender IndusInd Bank has reported nearly 25 percent growth in profit at Rs 936.2 crore for quarter ended December 2017 YoY, which was largely in line with estimates, but asset quality weakened a bit sequentially.

Profit in year-ago quarter had reported at Rs 750.64 crore by the bank. Other income, operating income and NII boosted profitability.

Net interest income missed analyst estimates, growing by 20 percent year-on-year to Rs 1,895 crore, from Rs 1,578.4 crore in corresponding quarter.

The bank has registered credit growth of 25 percent for the quarter YoY, which was in line with estimates while deposits grew by 23 percent with saving deposits growth at 68 percent.

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"The bank has continued to show a steadfast performance again in this quarter. All vectors for both topline and bottom line have progressed as per plan. We have maintained a stable quality loan book," Romesh Sobti, MD & CEO, IndusInd Bank said.

Net interest margin contracted to 3.99 percent for the December quarter against 4 percent in corresponding as well as previous quarter.

Profit was estimated at Rs 931.5 crore and net interest income at Rs 1,926.1 crore for the quarter, according to average of estimates of analysts polled by CNBC-TV18.

Asset quality weakened a bit during the quarter as gross non-performing assets (NPA) were higher at 1.16 percent in Q3 compared to 1.08 percent in previous quarter and net NPAs (as a percentage of net advances) were mildly higher at 0.46 percent from 0.44 percent QoQ.

In absolute terms, gross NPAs were at Rs 1,499 crore in Q3, increased from Rs 1,345.3 crore in Q2 and net NPAs stood at Rs 592.2 crore, up from Rs 536.9 crore on sequential basis.

Provisions for bad loans were at elevated levels at Rs 236.2 crore, higher by 8.9 percent from Rs 216.9 crore in year-ago; but declined 19.6 percent from Rs 293.8 crore in previous quarter.

Other income (non-interest income) during the quarter increased 16.7 percent to Rs 1,186.76 crore, driven by core fee income that showed 22 percent growth YoY.

Operating profit in Q3 jumped 22.1 percent to Rs 1,664.69 crore compared to corresponding period.

At 14:03 hours IST, the stock price was quoting at Rs 1,724.60, down Rs 10.15, or 0.59 percent on the BSE.
First Published on Jan 11, 2018 01:45 pm
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