IndusInd Bank’s net profit reduces by 62% in the fourth quarter of FY18-19 to Rs.360 crore. In the corresponding period during the last financial year, the lender registered a net profit of Rs.953 crore.
Mr. Romesh Sobti, the Managing Director and Chief Executive Officer of IndusInd Bank, said that the bank had given a sum of Rs.1,253 crore to IL&FS Group in the fourth quarter of FY19. The lender’s total provisions for the whole of FY18-19 stood at Rs.1,803 crore.
Mr. Sobti, who will be retiring in March 2020, also said that the bank has initiated a succession process for his position. He added that IndusInd Bank has been grooming suitable candidates for his position.
As on 31 March 2019, gross NPAs rose to Rs.3,947.41 crore, which is 2.1% of the bank’s gross assets, as against gross assets of 1.7% in the year-ago period. The bank’s net NPAs also rose to Rs.2,248.28 crore, which is 1.21% of the net advances, during the period under review.
The lender’s total income increased by 28.8% to touch Rs.7,550.43 crore during the last quarter of FY18-19, as against a total income of Rs.5,858.62 crore in the year-ago period. The net interest income for the period under review increased by 11% to touch Rs.2,232 crore from Rs.2,008 crore in the fourth quarter of the preceding financial year.
The lender’s net interest margin, during the fourth quarter of the previous fiscal, reduced to 3.95%. Further, the bank’s non-interest income during the reporting quarter grew by a total of 29% to Rs.1,559 crore.
Source: The Hindu Business Line, The Times of India