KOLKATA: On Monday, IndusInd Bank reported a net profit of ₹310.84 Crore, resulting in a fall of 16.17% Year on Year (YoY) decline, in the march-end quarter of the 2019-20 fiscal year. For comparison, their net profit was ₹360.10 Crore in the Q4 of FY19.
On the other hand, the bank’s net income from interest collection stood at ₹3,231.2 Crore . The reason behind it was that the net interest margins had improved up to 4.25% due to a fall in costs.
However, the gross non-performing assets (NPA) of the bank rose up to 12.4% in Q4 FY20, amounting in a total of ₹5,146.7 Crore against a ₹4,578.43 Crore, last fiscal. Specifically, the net NPA declined to 13.2% in Q4, amounting in ₹1,886.58 Crore from ₹2,173.3 Crore. Quarter on Quarter (QoQ).
The report further stated that the Gross NPA ratio had increased to 2.45% against 2.18% last quarter. The net NPA stood at 0.91% versus 1.05%, QoQ.
The bank reported that they have made a provision of ₹260 Crore during Q4 FY20, in anticipation of COVID-19 Pandemic. The total Q4 provisions, however, amounts to ₹2,440 Crore against ₹1,043 Crore, QoQ.
The report stated that the Capital Adequacy Ratio in Q4 of last fiscal was at 15.04% versus 13.92% QoQ and 14.16% YoY.
IndusInd Bank’s deposits grew 4% YoY, in Q4FY20. Sumant Kathpalia, CEO of IndusInd Bank, said that the bank had some government related deposit withdrawals during the quarter. However, The bank expects to show sequential growth in deposits in the next quarter.
The bank has slowed down its loan growth towards the end of the quarter due to COVID impact.
“We remain well capitalized at over 15% as of Q4. RBI has permitted us to allow a 90-day moratorium for clients. We are educating our clients to get their instalments in as there will be additional interest on availing moratorium,” Kathpalia said.
He assured investors that the bank has taken ₹23 Crore provisions in the quarter against the moratorium granted by the bank.
Furthermore, 70% of the bank’s unsecured business is from salaried employees and rest from self employed clients, he added. Kathpalia expected huge recovery on unsecured side.
Quarterly reports from several banks in India have consistently showed declines in several margins like net profit. Experts are attributing some of the blame to the global pandemic that is sweeping across our nation, right now.