Private sector lender IndusInd Bank on Thursday reported a 40 percent fall in net profit for the September 2024 quarter. Profit slipped to Rs 1,331 crore in Q2 , missing Street estimates. Profit was hit by a surge in provisions for bad loans in the last quarter. In the September 2023 quarter, the lender reported a profit of Rs 2181 crore.
Provisions and contingencies climbed 87% to Rs 1,820 crore in Q2 against Rs 974 crore reported in the same quarter previous year.
On the other hand, the lender's net interest income (NII) grew 5 percent to Rs 5,347 crore during the July-September quarter against NII of Rs 5,077 crore in the corresponding quarter last year.
Net interest margin (NIM), a key profitability metric, slipped to 4.08 percent from 4.29 percent in the year-ago period.
It reported a 13 percent (year-on-year) rise in loan growth to Rs 3.57 lakh crore. Deposits rose 15 percent to Rs 4.12 lakh crore. The bank maintained a strong capital adequacy ratio (CRAR) of 16.51 percent, supported by a Tier 1 capital of 15.21 percent, indicating a strong capital position, it said.
The earnings were announced after market hours. The stock closed on a flat note at Rs 1278.90 on BSE. Market cap of the lender stood at Rs 99,625 crore.