Business Standard

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

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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