IndusInd Bank share top Sensex, Nifty gainer despite 64% fall in Q1 net profit

Share price of IndusInd Bank gained 7% in early trade today after the lender reported a 64%  fall in Q1 net profit. Q1 earnings came above expectations as analysts at the ICICI Securities expected profit to fall 83.5 per cent year-on-year (YoY) to Rs 236.8 crore.

HDFC Securities saw the lender posting net profit at Rs 30 crore down 78.9% year-on-year in last quarter. Share price of IndusInd Bank rose 6.99% intraday to Rs 563.75 against previous close of Rs 526.90 on BSE. IndusInd Bank stock has gained 7.84%  in last two days.

The large cap stock was top gainer on Sensex and Nifty. On Nifty, the stock rose 7.02% to Rs 564.75. The stock trades higher than 5 day, 20 day, 50 day and 100 day moving averages but lower than 200 day moving averages.

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However, it has lost 63.78% since the beginning of the year and fallen 61% in the last one year. Market cap of the bank rose to Rs 37,962 crore. In one month, the share has gained 14%.

Total 8.32 lakh shares changed hands amounting to turnover of Rs 45.69 crore. The lender reported nearly 68 per cent fall in standalone net profit to Rs 460.64 crore in Q1, due to jump in provisioning.

The bank recorded a net profit of Rs 1,432.50 crore in the same quarter previous fiscal. The bank's standalone total income was up at Rs 8,680.92 crore in April-June quarter, compared to Rs 8,624.62 crore in the same period last year, IndusInd Bank said in a regulatory filing.

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On the asset quality side, gross non-performing assets (NPAs) or the bad loans as a proportion of gross loans at the end of June 2020 rose to 2.53 per cent from 2.15 per cent of the gross advances as on June 30, 2019. In absolute terms, the gross NPAs spiked to Rs 5,098.95 crore from Rs 4,199.66 crore. Provisions for bad loans and contingencies in Q1 rose by over five-times to Rs 2,258.88 crore as against Rs 430.62 crore in the year-ago period.