Private sector lender IndusInd Bank’s consolidated net profit jumped 50 per cent to Rs 1,242 crore in the October–December quarter (Q3) of FY22, aided by healthy net interest income and lower provisions. In the corresponding period of last year, the bank had reported a net profit of Rs 830 crore. The bank’s standalone net profit for the period was up 36 per cent to Rs 1,161 crore.
Net interest income of the lender, the difference between interest earned and interest expended, increased 11 per cent to Rs 3,794 crore in the reporting quarter while net interest margin, a measure of profitability, stood at 4.10 per cent, up 3 basis points sequentially.
Other income rose 14 per cent to Rs 1,877 crore in Q3FY22 as against Rs 1,646 crore while core fee income grew 9 per cent YoY to Rs 1,519 crore as against Rs 1,389 crore in the corresponding quarter of previous year.
Provisions and contingencies of the lender fell 11 per cent to Rs 1,654 crore In Q3FY22 as against Rs 1,853.52 crore in the year ago period. In the previous quarter, the lender had provisions to the tune of Rs 1,703.36 crore.
Asset quality of the lender improved 29 basis points sequentially as gross non-performing assets (NPAs) ratio stood at 2.48 per cent at the end of December quarter as against 2.77 per cent at the end of September quarter. Similarly, net NPAs ratio improved to 0.71 per cent as against 0.8 per cent.
The 'third wave' of Covid-19 broke out at December end, which has impacted banks' operations mildly and the level of uncertainty is currently reducing. In view of the same, the bank has made regulatory, floating, counter cyclical and/or contingent provisions, taking the total amount of such provisions to Rs 3,740 crores 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, the bank said.
Under Reserve Bank of India’s second covid restructuring package, the bank has restructured loans worth Rs 2,873 crore.
The lender’s advances grew 10 per cent year-on-year (YoY) and 4 per cent sequentially to Rs 2.28 trillion at the end of December quarter as against Rs 2.07 trillion in the year ago period. Deposits, on the other hand, increased by 19 per cent YoY to Rs 2.84 trillion, with low cost deposits comprising 42 per cent of the total deposits.
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