Private sector lender IndusInd Bank today reported a fall in net profit in the fourth quarter, hurt by higher provisions for bad loans. Net profit fell to ?360 crore for the quarter ended March 31, 2019, as compared to ?953 crore in the year earlier period. Provisions for bad loans increased to ?1,560 crore in the March quarter, as against ?606 crore in December quarter and ?335 crore in the March quarter of the previous year.
During the quarter, IndusInd Bank classified ?3,004 crore infra assets of IL&FS group as NPA during the quarter. Its provision for exposure to IL&FS holding company increased to 70% and to IL&FS operating companies/Special Purpose Vehicle (SPVs) increased to 25%.
Asset quality deteriorated, with both gross as well as net NPA as a percentage of total loans increasing in the March quarter. Gross NPAs a percentage of total loans increased to 2.1% in March quarter, against 1.13% in the December quarter. Similarly, net NPA also increased to 1.21%, from 0.59%.
However, the bank reported a 10% increase in net interest income to ?2,240 crore in the March quarter. IndusInd Bank has recommended a dividend of Rs. 7.50 per share.
IndusInd Bank shares fell over 2% after the results were announced by subsequently recovered in afternoon trade.