Asset quality concerns spoil IndusInd Bank's Q2 show; net profit surges 50%

Loan book growth slowed to 21 per cent and slippages and SMA-2 loan pool rose sharply

IndusInd Bank’s July-September 2019 quarter’s (second quarter, or Q2) standalone net profit was up 50.3 per cent year-on-year (YoY) to Rs 1,383 crore, somewhat lower than analysts’ expectations of Rs 1,416 crore, according to a Bloomberg poll. However, signs of potential asset quality weakness spoiled the show. The stock shed over 6 per cent to close at Rs 1,228.95 on Thursday, even as the Sensex was down just 0.8 per cent.

Despite gross non-performing assets (NPAs) of 2.19 per cent in Q2 remaining near flat at the April-June 2019 quarter (first quarter, or Q1) levels of 2.15 per cent, other