Private sector IndusInd Bank reported a 52% year-on-year rise in consolidated net profit to ₹1,401 crore for the June-September quarter on improved margins and healthy loan growth.
Net interest income rose 32% to ₹2,909 crore while net interest margin increased to 4.1% from the 3.84% reported a year ago.
A significant portion of the bank’s retail loan book comprises fixed rate loans while cost of funds have come down, aiding margin improvement. Gross non-performing assets rose to 2.19% of gross advances as on September 30, 2019 from the 1.09% a year ago.
Provision for bad loans and contingencies for the September quarter rose to ₹737.71 crore against ₹590.27 crore a year ago.
“We have done accelerated provisioning to beef up the provision coverage ratio,” said Romesh Sobti, MD and CEO, IndusInd Bank. At end June, the bank’s PCR was 50%.
The stock fell 6.5% to ₹1,228.95 on Thursday. Mr. Sobti said the planning phase to identify a new chief executive was over and an announcement would be made shortly.
Mr. Sobti,who retires on March 31, 2020, said an announcement on the new CEO would be made shortly.
