Rise in non-performing assets only a blip for IndusInd Bank

Gross NPAs at 1.09% broke FY17 trend of sub-1% levels

IndusInd Bank met the Street’s expectations when it reported a 26 per cent growth in its June quarter (Q1) net profit at Rs 837 crore. Net interest income — interest earned minus interest expended — increased 31 per cent year-on-year (y-o-y) to Rs 1,774 crore.

The net interest margin was 4 per cent despite a marginal increase in the cost of funds in the reporting quarter. An increase in low-cost current and savings account deposits helped its margins. 

However, the bank’s gross non-performing assets (NPAs) rose to 1.09 per cent in Q1. The figure was largely contained at less than a per