IndusInd Bank shares zoom 17% after Q4 earnings; lender posts 12% decline in consolidated profit
Shares of IndusInd Bank on Tuesday jumped 17 percent at the close of trade after the company reported its March quarter earnings
New Delhi: Shares of IndusInd Bank on Tuesday jumped 17 percent at the close of trade after the company reported its March quarter earnings.
On Monday, post-trading hours, IndusInd Bank reported a 12.31 percent dip in its consolidated profit after tax at Rs 315.25 crore for the quarter ended March 2020 due to an increase in loan loss provisions.
Its overall provisions jumped to Rs 2,440 crore as against Rs 1,560 crore in the year-ago period, which dented the bottomline the most.
The scrip zoomed 15.11 percent to close at Rs 468.90 on the BSE. During the day, it advanced 18 percent to Rs 480.90.
At the National Stock Exchange (NSE), it rose sharply by 17 percent to close at Rs 476.95.
IndusInd Bank was the top gainer in the Sensex and Nifty pack.
The company's market valuation also rose by Rs 4,288.76 crore to Rs 32,520.76 crore on the BSE.
In traded volume terms, 30.59 lakh shares were traded on the BSE and about 6 crore on the NSE.
On a standalone basis, the net profit fell 16.17 percent to Rs 301.84 crore during the January-March quarter as against Rs 360.10 crore in the year-ago period.
The bank's newly appointed chief executive and managing director Sumant Kathpalia said the provisions included a floating provision of Rs 260 crore for COVID-19 related impact on asset quality and Rs 23 crore for accounts which are unrecognised as non-performing assets as per a RBI direction during the pandemic period.
Its overall gross non-performing assets (NPA) ratio jumped to 2.45 percent of the total assets as against 2.10 percent in the year-ago period on a consolidated basis.
In the background of the exposures to stressed assets in the infrastructure and non-bank lenders haunting its book, Kathpalia said the bank plans to move away from the riskier sectors, and will also reduce exposures to diversified groups going forward.
He said over 95 percent of the retail borrowers, whose share in the overall loanbook has increased to 56 percent now, repaid their loans for March, and the bank is pursuing them to continue doing so for April as well, pointing out that the RBI's moratorium will increase interest outgo.
The bank did not offer the scheme for corporate borrowers and very few of them have come forward asking for relief, he said, adding 75 percent of small business owners have repaid their dues as per schedule till April.
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Scheduled commercial banks (SCBs) were carrying NPAs worth Rs 8.96 lakh crore on their balance sheet at the end of March 2020