IndusInd Bank Q4 profit down on higher provisions

The shares of IndusInd Bank were trading in green by more than 10 per cent in the early trade on Tuesday after the company reported its March 2020 quarter numbers.

The private lender reported March quarter profit at Rs 301.84 crore, down by 76.8 per cent as compared to the previous quarter, which was at Rs 1,300.2 crore. This was an impact of higher provisions and lower other income however, lower tax (down by 77 per cent QoQ) helped to limit the decline.

The percentage of gross non-performing assets (NPA) came in at 2.45 per cent in the quarter ended March 2020 as compared to 2.18 per cent in the quarter ended December 2019, showcasing a decline in the asset quality of the lender. The figure stood at 2.10 per cent in the corresponding period for the previous fiscal year.

The bank stated that there is a high level of uncertainty about the duration of the lockdown as well as the time required for things to get normal and in the light of the current circumstances; it made a floating provision to the tune of Rs 260 crore. Provisions and contingencies increased 56.36 per cent YoY and 134 per cent QoQ to Rs 2,440.32 crore.

IndusInd Bank Ltd is engaged in banking and para-banking services. It includes accepting deposits, such as savings accounts, current accounts and fixed deposits, along with banking solutions sector lending.

At 1.30 pm on Tuesday, the stock was trading at Rs 453.75, up by 11.39 per cent or Rs 46.40 per share. The 52-week high is recorded at Rs 1,695 and the 52-week low is Rs 235.60 on BSE.