Mumbai: IndusInd Bank on Thursday posted a mixed set of numbers when the private sector lender reported December quarter net profit in line with expectations but witnessed a marginal rise in bad loans.
Meanwhile, the bank's net interest income (NII) came in at Rs 1,894.81 crore, witnessing growth of 20.04% year-on-year (YoY) and 4.05% quarter-on-quarter (QoQ) basis. The bank had recorded a net profit of Rs 750.64 crore in the October-December quarter of last fiscal. Gross and NPAs were at ₹1,784.31 crore and ₹1,262.96 crore, respectively in Q3 of 2017-18 against ₹1,560.23 crore and ₹1,065.66 crore in third quarter of 2016-17, respectively.
Commenting on the performance, IndusInd Bank MD & CEO Romesh Sobti said: "The bank has continued to show a steadfast performance again in this quarter".More news: Airtel Offering Free Amazon Prime Membership For 1 Year!
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"In spite of the growth in balance sheet of 25%, we have seen increase in return on assets, which went up from 1.9% last quarter to 1.96% this quarter". "We saw 34 per cent increase in our disbursements on overall vehicle finance".
Asset quality of the lender worsened with gross non-performing assets (NPA) going up to 1.16% in Q3 compared with 1.08% in the previous quarter while net NPAs were at 0.46% compared with 0.44%. "If you look at only commercial vehicle, disbursements grew by 39%", Mr. Sobti said.
Provisions and contingencies rose 8.9% to Rs236.16 crore in the quarter from Rs216.85 crore a year ago.
On BFIL, IndusInd mentioned that the scheme is subject to the approval of the Reserve Bank of India (RBI), the Competition Commission of India (CCI), the Sebi, the respective shareholders of the bank and BFIL and lastly the National Company Law Tribunal (NCLT).