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.
According to ICICIdirect, IndusInd Banks quarterly PAT came broadly in-line with estimate.
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.
IndusInd Bank made an additional provision of Rs 255 crore on infra SPV exposure.The Bank has made a contingent provision of Rs 255 crore on these 's tandard' assets which is included under provisions (other than tax) and contingencies during quarter ended December 31, 2018, in addition to an amount of Rs 275 crore made during quarter ended September 30, 2018, IndusInd Bank said in a release.Asset quality:Asset 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.