IndusInd Bank Q3 Results: Lender logs 49.5% YoY jump in profit at Rs 1,241.39 cr

IndusInd Bank on Saturday reported a consolidated net profit of Rs 1,241.39 crore for the quarter ended December 31, 2021, up 49.49 per cent year-on-year as the private lender’s total income rose sharply for the period under review.

The net profit in the third quarter of the previous financial year stood at Rs 830.39 crore, an exchange filing to the BSE showed.

Total income for the quarter under review came in at Rs 9,614.34 crore, a rise of 8 per cent YoY from Rs 8,887.28 crore. The private bank’s Basel III Capital Adequacy Ratio was at 18.06 per cent as on December 31, versus 16.34 per cent a year ago and 17.37 per cent a quarter ago.

For the period under review, IndusInd Bank’s interest earned was at Rs 7,737.49 crore up from Rs 7,241.50 crore the same period a year ago. Interest expended stood at Rs 3,943.92 crore in October-December as against Rs 3,991.96 crore in the third quarter of the previous year. This implies net interest income of Rs 3,793.57 crore for IndusInd Bank in the third quarter.

On the asset quality front, the private bank’s gross and net non-performing asset ratios declined sequentially but rose on a yearly basis.

Gross NPA ratio was at 2.48 per cent as on December 31 versus 1.74 per cent a year ago and 2.77 per cent as on September 30, the exchange filing showed.

The net NPA ratio was at 0.71 per cent as on December 31 as against 0.22 per cent a year ago and 0.80 per cent on September 30.

According to the bank's release, in light of the third wave of COVID-19 in India, which broke out towards the end of December, the bank has made certain provisions.

“The bank has made regulatory, floating, counter cyclical and/or contingent provisions, taking the total amount of such provisions to Rs. 3,740 crore as of December 31, 2021, including an amount of Rs. 1,365 crore in respect of borrower accounts restructured in accordance with Resolution Framework for Covid-19 related stress.”

In line with the RBI’s steps in 2020 to provide relief to borrowers amid the COVID-19 pandemic, IndusInd Bank had offered moratorium of loan instalments and interest payable.

Providing a break up of increase in provisions that occurred on account of resolution plans in line with the RBI’s Resolution Framework, IndusInd Bank said that those on loans to small businesses rose by 153.89 crore, those for business loans by 230.74 crore and those for personal loans by 67.56 crore.

This includes NPA provision of Rs 115.18 crore for cases which slipped to NPA from restructuring, the bank said.

The private lender’s revenue from retail banking rose to Rs 6,019.41 crore in October-December, a jump of 17.6 per cent from Rs 5,117.79 crore the same time a year ago.