Business Standard

IndusInd Bank Q2 net profit dips 53.2% on higher Covid-19 provisioning

The provisions and contingencies were up by 166 per cent at Rs 1,964 crore in Q2FY21 from Rs 737 crore in Q2FY20

indusind bank
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The bank's Managing Director Sumant Kathpalia said the bank had been conservative in making provisions to lower the risks to balance sheet.

Abhijit Lele Mumbai
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

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