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IndusInd Bank reported a 36.2 per cent jump in its standalone net profit to ₹1,161.27 crore for the third quarter of the fiscal on the back of robust growth in net interest income and lower provisions. The bank had a standalone net profit of ₹ 852.76 crore in the third quarter of last fiscal. For the quarter ended December 31, 2021. IndusInd Bank reported an 11.4 per cent increase in net interest income to ₹ 3,793.57 crore from ₹ 3,406.1 crore a year ago. Net interest margin for the third quarter in 2021-22 stood at 4.1 per cent against 4.12 per cent a year ago and 4.07 per cent in the second quarter of this fiscal.
Other income grew by 10 per cent on a year-on-year basis to ₹1,876.78 crore for the quarter under review. Provisions declined by 10.8 per cent to ₹1,654.05 crore in the October to December 2021 quarter as compared to ₹1,853.52 crore a year ago. However, asset quality deteriorated.
NPAs rise
Gross non-performing assets rose to ₹5,779.27 crore or 2.48 per cent of gross advances as on December 31, 2021 versus 1.74 per cent a year ago. Net NPAs increased to 0.71 per cent at the end of the third quarter of the fiscal compared to 0.22 per cent as on December 31, 2020.
MFI business
In a media call, IndusInd Bank MD and CEO Sumant Kathpalia said the focus was on addressing concerns in the micro finance business – Bharat Financial Inclusion Limited (BFIL), this quarter. “An internal review of the microfinance division has already been conducted and is in line with the management guidance. An external review is expected to be completed over the next one to two weeks,” he said, adding that staff accountability needs to be fixed on certain product gaps and it will be decided what action has to be taken.
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