Q3FY19 Results: IndusInd raises provisions for IL&FS exposure

IndusInd Bank posts muted PAT growth of 5 per cent for the third quarter of FY19, on Wednesday. The bank increased its provision for IL&FS group loans in view of the company's defaults on interest payments to bondholders. 

For Q3FY19, IndusInd Bank posted PAT of Rs. 985 crore as against Rs. 936 crore, a growth of 5 per cent YoY. The company's reported gross NPA  at 1.13 per cent for Q3FY19 as against 1.09 per cent in the same quarter a year ago, net NPA was at 0.59 per cent compared to 0.48 per cent in Q3FY18.

The bank has increased its contingency provision for IL&FS group loan to Rs. 606 crore. IndusInd Bank had reported exposure of around Rs. 3,000 crore to  IL&FS holding companies. The bank's NII for Q3FY19 was at Rs. 2,288 crore as compared to Rs. 1,894 crore in Q3FY18, which is a rise of 21 per cent. Other Income was at Rs. 1,470 crore.

The bank saw credit growth at 35 per cent and cost-to-income ratio was around 43 per cent, said the bank's management, which forecasted the net interest margins to be stable till the next quarter. 

Ahead of its results announcement, the stock of IndusInd Bank experienced huge volatility off late. On Wednesday, the stock opened at Rs. 1570.10 per share and hit an intraday high of Rs. 1,610.00 and low of Rs. 1,549.30 per share. The stock closed at Rs. 1,600.80, up by 1.47 per cent on BSE.