IndusInd Bank Q1 profit flat at Rs 2,171 crore in a lean season
IndusInd Bank Friday reported a flat 2% on-year rise in its June quarter net profit at ₹2,171 crore as business slowed in a seasonally weak review period that the lender's chief executive described as «challenging.» Analysts tracked by Bloomberg had pegged net profit of ₹2,358.6 crore.
The lender had earned a net profit of ₹2,124 crore in the year-ago period.
The net interest income — the difference between interest earned and paid — rose 11.1% to ₹5,408 crore. Net interest margin (NIM) for the June quarter came in at 4.25%.
«It was a challenging quarter. Collections and cautious disbursements were the key focus during the quarter given the external disturbances,» said Sumant Kathpalia, MD & CEO, IndusInd Bank. «We aim to achieve credit costs between 110 bps to 130 bps given that a seasonally weak and turbulent quarter is behind us. Quarter 1 is generally seasonally weak with added disturbances from external factors. The disbursements are already picking up and we remain committed towards 18-23% lending growth.»
Asset quality metrics deteriorated sequentially. The gross non-performing asset ratio for the June quarter was at 2.02% versus 1.92% in the quarter ending March 2024.
GNPA ratio was at 1.94% a year ago. Net NPA for the quarter 0.60%.
The rise in NPA came from segments such as microfinance (5.16%), cards (3.07%), loans against property (3.14%) and commercial vehicles (1.07%). Fresh slippages or the formation of new bad loans was at ₹1,536 crore, almost ₹1,488 crore came from the consumer book.
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