IndusInd Bank nears record high on strong Q3 results

The stock rallied 6% to Rs 1,231 on BSE in intra-day trade

IndusInd Bank rallied 6% to Rs 1,231 on BSE at intra-day trade after reported a healthy 29% year on year growth in net profit at Rs 751 crore for the third quarter ended December 31, 2016 (Q3FY17). The private sector lender had profit of Rs 581 crore in the same quarter last fiscal.

Net interest income (NII), the difference between interest earned and interest expended, increased 33% to Rs 1,460 crore on YoY basis.

Analysts on an average expected profit of Rs 716 crore and NII of Rs 1,503 crore for the quarter.

Net Interest margin, a key indicator of bank’s profitability, rose to 4% for the first time. The bank’s gross non-performing assets (GNPAs) increased to 0.90% of advances from 0.77% in the year-ago period. In the period, net NPAs rose to 0.37% from 0.31%, however, it was down by two basis point on a sequential basis.

“Margins held stable at 4% aided by strong 22% quarter on quarter growth in savings deposits, healthy momentum in loan growth and reduction in funding cost,” according to analysts at Antique Stock Broking.

The bank remains on track to sustain its margin profile and maintain strong earnings traction as it benefits from branch expansion, improved product mix and industry leading loan growth, said brokerage firm in Q3 results preview.

At 10:55 am; the stock was up 5% at Rs 1,219 as compared to 0.49% rise in the S&P BSE Sensex. A combined 3.22 million shares changed hands on the counter on BSE and NSE so far. The stock is slightly away from its record high of Rs 1,255 hit on September 7, 2016 in intra-day trade.