Mumbai: Higher provisions and slow net interest income growth pulled down IndusInd Bank’s profit by 3.4 percent sequentially during the July to September quarter, the private sector lender said on Thursday.
The profit during the quarter declined to Rs 1,383 crore compared to Rs 1,432 crore reported in the April to June quarter while the year-on-year rise was 69 percent (Rs 920 crore in Q2 FY19).
Net interest income, the difference between interest earned and interest expended, grew by 2.3 percent quarter-on-quarter 32 percent sequentially to Rs 2,909 crore, according to an official statement.
On the asset quality front, gross non-performing assets (NPAs) increased to 2.19 percent in Q2 against 2.15 percent in the previous quarter, but the net NPA declined to 1.12 percent against 1.23 percent on a sequential basis.
IndusInd Bank reported slippages at Rs 1,102 crore in the quarter ended in September, which was quite higher compared to Rs 725 crore in the June quarter due to 174 percent increase in corporate slippages (at Rs 479 crore) and 13 percent in consumer slippages (at Rs 623 crore).
Provisions during the quarter remained elevated at Rs 738 crore, rising 71 percent compared to Q1 FY20 and the year-on-year increase was 25 percent. The provision coverage ratio improved to 50 percent in the September quarter against 43 percent reported in the June period.