Private sector lender IndusInd Bank has registered a 38 per cent rise in net profit for the first quarter of the current fiscal. The bank reported a net profit of ₹1,432.50 crore for the quarter ended June 30, 2019, against ₹1,035.72 crore a year-ago.
The results include the operating performance of Bharat Finance Inclusion (BFIL), which has now been merged with the bank. A statement released by IndusInd Bank said the financial results for the period ended June 30, 2019 are not comparable with the previous periods.
The lender’s net profit in the previous quarter of January- March had dropped by 62 per cent to ₹360.10 crore, largely due to its exposure to ailing Infrastructure Leasing and Finance Services (IL&FS).
“During this quarter (under review), the bank has witnessed a healthy growth in its topline as well as in operating profit and will now push forward into the subsequent quarters basis our strong belief in new opportunities, especially in rural India,” said Romesh Sobti, Managing Director and CEO, IndusInd Bank.
Its net interest income grew a robust 34 per cent to ₹2,844 crore in April-June quarter against ₹2,122 crore in the same period a year ago. The net interest margin also improved to 4.05 per cent from 3.92 per cent a year-ago.
Non-interest income for the quarter under review grew by 28 per cent to ₹1,663 crore (₹1,302 crore).
The bank’s asset quality was stable, with both gross and net non-performing assets under control. Gross NPA stood at 2.15 per cent of gross assets as on June 30, against 2.1 per cent as on March 31, and 1.15 per cent as on June 30, 2018. In absolute terms, gross NPA rose to ₹4,199.66 crore for the first quarter of the fiscal, against ₹1,740.62 crore a year-ago.
Net NPA amounted to ₹2,380.51 crore or 1.23 per cent as on June 31, compared to 0.51 per cent a year-ago.
Its provisions rose 23 per cent to ₹430.62 crore in the first quarter from ₹350.01 crore a year ago. However, it declined from ₹1,560.69 crore in the fourth quarter of last fiscal.
The bank’s scrip fell 1.98 per cent to close at ₹1,510.35 apiece on the BSE. IndusInd Bank will hold its annual general meeting on August 16.