New Delhi [India]: Private sector lender IndusInd Bank on Wednesday announced its fourth quarter result which missed the analysts’ estimates due to sharp jump in provisions despite stable asset quality while net interest income was ahead of expectations due to better loan growth.
The bank announced its profit during the quarter, which grew by 21.2 percent year-on-year to Rs. 751.6 crore, driven by solid growth in net interest income, other income and operating income.
Also, the bank’s net interest income increased 31.5 percent to Rs 1,667.4 crore in the quarter ended March 2017, with loan growth at 28 percent.
It said that other income in Q4 jumped 32.7 percent to Rs 1,211.30 crore and operating profit was up by 36.6 percent at Rs 1,572.23 crore compared with corresponding quarter of previous year.
Provisions and contingencies doubled in January-March quarter at Rs 430.1 crore compared with Rs 213.6 crore in year-ago quarter and Rs 217 crore in previous quarter.
Asset quality of the bank was stable during the quarter as gross non-performing assets (as a percentage of gross advances) declined 1 basis point sequentially to 0.93 percent and net NPA was unchanged at 0.39 percent.
In absolute terms, however, gross NPA in Q4FY17 increased 8.6 percent to Rs 1,055 crore and net NPA rose 9.5 percent to Rs 439 crore compared with previous quarter.
However, the bank’s board members also approved a dividend of Rs. six per share. (ANI)