INSUBCONTINENT EXCLUSIVE:
IndusInd Bank on Wednesday reported steady financial results for quarter ended December 2018.
Higher provision continued to impact earnings,
with profit after tax staying flat on a YoY basis at Rs 985 crore
Business growth of lender remained strong
Healthy growth in vehicle portfolio led to continued traction in advances at around 35 per cent to Rs 1,74,173 crore
Here are key takeaways from IndusInd Bank's third quarter results.
Net profit: The private lender reported 5.21 per cent year-on-year
rise in net profit at Rs 985.03 crore for quarter under review against Rs 936.25 crore in same quarter last year
An ETNow poll had projected a net profit of Rs 922 crore for Q3 FY19.
Net interest income (NII): The figure increased by 20.76 per cent to
Rs 2,288.09 crore for October-December against Rs 1,894.81 crore in same period last year.
Provisions and contingencies: The company made a
provision of Rs 606.68 crore in Q3 FY19 against Rs 236.16 crore in same period last year
on these 's tandard' assets which is included under provisions (other than tax) and contingencies during quarter ended December 31, 2018,
quality of lender remained almost stable on a quarter-on-quarter basis, with percentage of gross non-performing assets rising to 1.13 per
cent in Q3FY19 from 1.09 per cent in Q2FY19
Percentage of net NPA also increased to 0.59 per cent from 0.48 per cent during same period.
Update on ILFS: ILFS continued to be a standard
account for IndusInd Bank, according to media reports
Total attributed provision to ILFS exposure stood at Rs 600 crore so far
IndusInd Bank will assess need for further provisions towards ILFS group in Q4
Other updates: The bank has no divergence according to Reserve Bank of India
Cost-to-income ratio stood at 43.50 per cent as of December 2018
