IndusInd Bank's second quarter net profit rose 4.6 percent year-on-year to Rs 920.25 crore, tempered by a sharp rise in provisions. If one were to exclude the one-off provisions, the profit would have grown 25 percent.
Profit in the quarter ended September 2017 stood at Rs 880.1 crore.
Net interest income grew by 21 percent year-on-year to Rs 2,203.28 crore in Q2 with robust loan growth at 32.4 percent and deposit growth at 19 percent YoY.
The bank said net interest margin declined to 3.88 percent in September 2018 against 4 percent in same period last year.
Asset quality improved in the quarter ended September 2018 as gross non-performing assets (NPA) fell to 1.09 percent against 1.15 percent in previous quarter and net NPA declined to 0.48 percent against 0.51 percent QoQ.
In absolute terms, gross NPA increased 2.3 percent sequentially to Rs 1,781.4 crore and net NPA rose 3.3 percent to Rs 787.6 crore in second quarter of financial year 2018-19.
Provisions and contingencies shot up 68.6 percent sequentially and 101 percent year-on-year to Rs 590.27 crore in July-September quarter, IndusInd Bank said.
The bank has made a contingent provision of Rs 275 crore on certain infrastructure assets, which are standard assets.
Other income or non-interest income during the quarter grew by 11 percent to Rs 1,317.3 crore and operating profit surged 22 percent to Rs 1,992.44 crore compared to year-ago.
At 13:47 hours IST, the stock price was quoting at Rs 1,615.10, down Rs 36.25, or 2.20 percent on the BSE.
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