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IndusInd Bank: Narrative changing from asset quality to green shoots

Without taking the focus away from the difficult operating environment, the management is optimistic on growth after three quarters

IndusInd Bank
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Much of it may be attributed to the bank’s recent practice of recognising the asset quality pain upfront.

Hamsini Karthik
A cursory reading of IndusInd Bank’s September quarter (Q2) results seems uninspiring. Net interest income (NII) grew by 13 per cent year-on-year (YoY) (down 1 per cent sequentially) and net profit fell by a whopping 53 per cent over last year. 

These numbers were below the Street’s estimates.

However, the positive aspect is the bank’s improving asset quality. Gross non-performing assets (NPA) ratio increased by only two basis points (bps) YoY to 2.21 per cent — the slowest NPA accretion rate so far. Without the Supreme Court’s standstill, it would have risen by 12 bps YoY to 2.31 per cent, still better that

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First Published: Oct 30 2020 | 8:13 PM IST

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