IndusInd Bank reports 32% YoY rise in Q3 net profit; asset quality stable

IndusInd Bank shares witnessed see-saw trade after the lender sharply increased provisions in the December quarter of the current fiscal. The bank made provisions for Rs 1,043.45 crore, as against Rs 737.71 crore provided for in Q2FY20, and Rs 606.68 crore in Q3FY19.  

The scrip first rose nearly 3 per cent to hit an intra-day high of Rs 1,586.55 on the BSE on Tuesday, before sliding 7.3 per cent off day's high to hit an intra-day low of Rs Rs 1471.

The bank reported a standalone net profit of Rs 1,300 crore, up 32 per cent year-on-year from Rs 985.03 crore logged in the same quarter of the previous fiscal (Q3FY19). Sequentially, the profit dipped 6 per cent from Rs 1,383.37 crore reported in Q2FY20. Besides, the bank's net interest income came in at Rs 3,074.02 crore. 

On a consolidated basis, the bank's net profit was Rs 1,309 crore, up 33 per cent YoY. In Q2FY20, the consolidated net profit was Rs 1,400.95 crore. 

Analysts at Prabhudas Lilldher had pegged the NII at Rs 3,053.2 crore, while the net profit was estimated at Rs 1,538.5 crore. 

"Earnings should be better but may continue to take benefit of lower tax rate to enhance some provision coverage ratio (PCR)," they wrote in the earings preview note.

On the asset quality front, the standalone gross non performing assets (GNPA) came in at Rs 4,578.43 crore, up 4.7 per cent QoQ from Rs 4,370.20 reported in Q2FY20. The same stood at Rs 1,968.15 crore in the corresponding quarter of the prebvious fiscal (Q3FY19), leading to a 132 per cent YoY rise. The net NPA, on the other hand, came in at Rs 2,173.29 crore, down 1.3 per cent QoQ from Rs 2,202.57 crore. On YoY basis, the NNPA rose sharply by 111 per cent from Rs 1029.27 crore.

In percentage terms, the GNPA ratio for the quarter under review stood at 2.18 per cent (2.19 per cent in Q2FY20, and 1.13 per cent in Q3FY19), while the NNPA was 1.05 per cent (1.12 per cent in Q2FY20, and 0.59 per cent in Q3FY19).

The lender's slippages rose to Rs 1,945 crore, up 76.49 per cent QoQ from Rs 1,102 crore reported in Q2FY20. 

At 2:05 pm, the stock reversed its entire gain to trade 0.87 per cent lower at Rs 1,527. In comparison, the benchmark S&P BSE Sensex was at 41,842.90, down 0.04 per cent.