IndusInd Bank updates analysts on coronavirus impact, bad loans scenario

The bank said credit costs likely to rise by 200-210 bps, targeting 60% provision cover, deposits down by 10-11% in March quarter

In its first analyst call after the appointment of Sumant Kathpalia as the bank's new managing director and chief executive officer, IndusInd Bank on Monday provided an update to analyst mainly to discuss the impact of covid-19 and the steps it is taking to strengthen the business.

Among key points of discussion, IndusInd Bank expects its credit cost (bad loan provisioning as a percentage of loan book) to be around 200 to 210 basis point in March 2020 quarter, which indicates a rise in bad loans. This is way higher than the average 37 basis points seen in the past