A cursory reading of IndusInd Bank’s September quarter (Q2) results seems uninspiring. Net interest income or NII grew by 13 per cent year-on-year (down one per cent sequentially) and net profit fell by 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) year-on-year to 2.21 per cent – the slowest NPA accretion rate so far. Without the Supreme Court’s standstill it would have risen by 12 basis points year-on-year to 2.31 per cent, still