Private lender IndusInd Bank’s consolidated net profit fell by 52.67 per cent during the second quarter of FY21 on a year-on-year basis.
Accordingly, IndusInd Bank‘s consolidated net profit fell to Rs 663 crore as compared to Rs 1,401 crore during the corresponding quarter of the previous year.
However, sequentially, the net profit for the quarter increased by 30 per cent over the quarter ended June 30, 2020.
“Net interest income for the quarter ended September 30, 2020 increased to Rs 3,278 crore from Rs 2,909 crore reported for the quarter ended September 30, 2019. Net interest margin for Q2FY21 is at 4.16 per cent,” the bank said in a statement.
“Operating expenses for the quarter ended September 30, 2020 were Rs 1,980 crore as against Rs 2,013 crore for the corresponding quarter of previous year,” it added.
According to the bank, the business was highly impacted in Q1FY21 due to the lockdown since March 24, 2020 to mitigate the spread of the Covid-19 pandemic. The calibrated unlocking commenced from June 1, 2020; and industrial and consumer spends are near pre-Covid levels in some areas.
Besides, the bank has made a ‘Pre Provision Operating Profit’ at Rs 2,852 crore for the quarter ended September 2020 as against Rs 2,623 crore for the corresponding quarter of the previous fiscal.
Furthermore, the bank reported that its loan book quality was stable.
“The gross non-performing assets were at 2.21 per cent of gross advances as on September 30, 2020 as against 2.19 per cent as on September 30, 2019. On account of higher level of prudential provisioning, the net non-performing assets were 0.52 per cent of net advances as on September 30, 2020 as compared to 1.12 per cent on September 30, 2019,” the statement said.
“The bank strengthened its balance sheet by improving provision coverage ratio to 77 per cent in September 2020 from 50 per cent in September 2019. Provisions and contingencies for the period ended September 30, 2020 were Rs 4,606 crore as compared to Rs 2,381 crore for the corresponding period of the previous year,” it added.