IndusInd Bank slips after Q3 results

IndusInd Bank fell 1.99% to Rs 408 at 14:16 IST on BSE after net profit rose 29.79% to Rs 346.90 crore on 21.68% increase in total income to Rs 2,623.76 crore in Q3 December 2013 over Q3 December 2012.

The result was announced during trading hours today, 10 January 2014.

Meanwhile, the BSE Sensex was up 129.07 points, or 0.62%, to 20,842.44.

On BSE, so far 5.22 lakh shares were traded in the counter, compared with an average volume of 3.89 lakh shares in the past one quarter.

The stock hit a high of Rs 428.30 and a low of Rs 407.20 so far during the day. The stock hit a record high of Rs 530.60 on 27 May 2013. The stock hit a 52-week low of Rs 318 on 28 August 2013.

The stock had underperformed the market over the past one month till 9 January 2014, sliding 10.74% compared with the Sensex's 2.87% fall. The scrip had also underperformed the market in past one quarter, rising 1.28% as against Sensex's 2.29% rise.

The large-cap company has an equity capital of Rs 524.44 crore. Face value per share is Rs 10 .

IndusInd Bank's ratio of net non-performing assets to net advances stood at 0.31% as on 31 December 2013, compared with 0.22% as on 30 September 2013 and 0.30% as on 31 December 2012.

The bank's ratio of gross non-performing assets (NPA) to gross advances stood at 1.18% as on 31 December 2013, compared with 1.11% as on 30 September 2013 and 0.99% as on 31 December 2012.

Provisions and contingencies rose 60.35% to Rs 126.16 crore in 31 December 2013 over 31 December 2012.

CASA (Current Accounts- Savings Accounts) ratio rose to 32.16% in Q3 December 2013.

The bank's Capital Adequacy Ratio (CAR) as per Basel III norms stood at 14.38% as on 31 December 2013, compared with 14.58% as on 30 September 2013.

In terms of RBI circular dated 23 August 2013 on 'Investment portfolio of banks - Classification, Valuation and Provisioning', IndusInd has opted to amortise the depreciation on the Available For Sale (AFS) and Held For Trading (HFT) portfolios on each of the valuation dates in equal installments during current financial year.

Accordingly, out of the total depreciation of Rs 93.64 crore as on 31 December 2013, the bank has recognized Rs 37.14 crore as deprecation in the profit and loss account for Q3 December 2013 and Rs 53.51 as deprecation in the profit and loss account for the nine months period April-December 2013, IndusInd Bank said. In accordance with its accounting policy consistently adopted which is more conservative compared with RBI guidelines, the bank continues to ignore appreciation on its AFS and HFT portfolio. The gross appreciation in the AFS and HFT portfolio amounted to Rs 36.16 crore as on 31 December 2013.

In line with the policy approved by the board of directors, the bank had created a floating provision for advances amounting to Rs 50 crores during the quarter ended June 30, 2013. This provision has been made without reference to any specific NPA and is in excess of the minimum requirements prescribed by RBI under Income Recognition and Asset Classification (IRAC) norms. This floating provision has been considered while computing the position of net NPAs, IndusInd Bank said.

IndusInd Bank caters to the needs of both consumer and corporate customers. Its technology platform supports multi-channel delivery capabilities. As on 31 December 2013, IndusInd Bank has 573 branches, and 1055 ATMs spread across 392 geographical locations of the country. The Bank also has representative offices in London and Dubai.

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