Private sector lender IndusInd Bank today reported a fall in net profit in the fourth quarter, hurt by higher provisions for bad loans. Net profit fell to ₹360 crore for the quarter ended March 31, 2019, as compared to ₹953 crore in the year earlier period. Provisions for bad loans increased to ₹1,560 crore in the March quarter, as against ₹606 crore in December quarter and ₹335 crore in the March quarter of the previous year.
During the quarter, IndusInd Bank classified ₹3,004 crore infra assets of IL&FS group as NPA during the quarter. Its provision for exposure to IL&FS holding company increased to 70% and to IL&FS operating companies/Special Purpose Vehicle (SPVs) increased to 25%.
Asset quality deteriorated, with both gross as well as net NPA as a percentage of total loans increasing in the March quarter. Gross NPAs a percentage of total loans increased to 2.1% in March quarter, against 1.13% in the December quarter. Similarly, net NPA also increased to 1.21%, from 0.59%.
However, the bank reported a 10% increase in net interest income to ₹2,240 crore in the March quarter. IndusInd Bank has recommended a dividend of Rs. 7.50 per share.
IndusInd Bank shares fell over 2% after the results were announced by subsequently recovered in afternoon trade.
