Indusind post 26% jump in Q1 net at Rs 836cr

Mumbai
11 Jul 2017

Midsize private sector lender Indusind Bank Tuesday reported a 26 per cent increase in the June quarter net at Rs 836.55 crore, helped by a healthy rise in the core interest income.
The bank had reported a post tax profit of Rs 661.38 crore for the April-June period last year.
Its core net interest income jumped 31 per cent to Rs 1,774.06 crore for the reporting period, while the non- interest income grew 20 per cent to Rs 1,167.26 crore helped by a 25 per cent rise in fee income at Rs 974.04 crore.
The bank had a Rs 122 crore write-back of provisions made for its exposure to the Jaypee Cement account in the preceding quarter, but chose not to take advantage of the same in the profit statement.
The write-back was the result of the consummation of the Rs 16,000-crore acquisition of Jaypee by Ultra tech.
Its managing director Ramesh Sobti said it has created a Rs 70 crore floating provision, continues to retain Rs 33 crore as a part of the loan is yet to be repaid by Ultratech, while Rs 20 crore was set aside as accelerated provisions for its exposure to the micro lending segment and security receipts on sales to asset resolution companies.
The bank has a Rs 50 crore exposure to three of the 12 big NPA accounts identified by the Reserve Bank for resolution under the provisions of the Insolvency and Bankruptcy Code but has sufficient provisions against those, Sobti said, adding all the provisioning was done in the April-June period.
He said while two accounts have a 100 per cent provision, one has the necessary 50 per cent money set aside.
Its gross nonperforming assets ratio rose to 1.09 per cent from the 0.91 per cent in the year-ago period, but Sobti said this is largely due to two restructured accounts slipping into NPA.
Its total provisions rose to Rs 310 crore in June quarter from Rs 230 crore in the year ago, which was attributed to loan growth. (PTI)