IndusInd Bank Posts 12% Fall In Q4 Profit, Says Loan Book Quality Stable

IndusInd Bank on Monday reported a net profit of Rs 315.25 crore for the quarter ended March 31. That marked a fall of 12.32 per cent compared to its net profit of Rs 359.53 crore in the corresponding period a year ago. In a regulatory filing after market hours, Pune-based IndusInd Bank said its interest earned increased 23.29 per cent to Rs 7,386.57 crore in the final quarter of financial year 2019-20. IndusInd Bank's net interest income - the difference between interest earned and interest expended - rose 44.74 per cent to Rs. 3,231.19 crore compared to the year-ago period.

Its net interest margin - a key gauge of profitability for banks - improved to 4.25 per cent in the March quarter, from 4.15 per cent in the previous quarter and 3.59 in the quarter ended March 31, 2019.

"During the quarter, there was a considerable slowdown in economic activities following the outbreak of COVID-19 which did have an impact on business volumes across sectors. However, given the bank's long operating history, we have seen several business cycles and have always demonstrated an ability to manage our portfolios effectively in such times, and emerge stronger," said Sumant Kathpalia, managing director and CEO of IndusInd Bank.

The lender said its loan book quality was stable. Gross non-performing assets (NPAs) as a percentage of total loans came in at 2.45 per cent as of March 31, as against 2.18 per cent at the end of the previous quarter and 2.10 per cent as of March 31, 2019.

"We are now pushing forward into FY21 basis our strong belief in new opportunities in the banking markets, especially in rural India, which will be one of the big pillars of our growth in the near future," he added.

Shares in IndusInd Bank ended at Rs 407.35 apiece on the BSE, ahead of the earnings announcement by the lender.