New Delhi:IndusInd Bank on Thursday reported a net profit of Rs. 1,383.37 crore in the second quarter of current financial year, marking a rise of 50 per cent compared with the corresponding period last year. The bank’s net interest income rose 29 per cent to Rs. 2,909.54 crore compared with Rs. 2,248.28 crore in the year-ago period. IndusInd Bank shares plunged nearly 6 per cent after the earnings announcement by the bank. Net interest income (NII) is the difference between the interest earned and the interest expended by a lender, and is a key parameter to gauge a bank’s profitability.
The bank’s asset quality largely remained stable as its gross non-performing assets as a percentage of total advances came in at 2.19 per cent in the September quarter, as against 2.15 per cent in the previous quarter.
Its net non-performing assets as a percentage of total advances came in at 1.12 per cent as against 1.23 per cent in the June quarter.
The bank’s provisions for bad loans rose to Rs. 737.71 crore versus Rs. 530.62 crore in the previous quarter.
On the National Stock Exchange (NSE), IndusInd Bank shares declined as much as 5.89 per cent to Rs. 1,231.60 apiece after the earnings announcement. On the Bombay Stock Exchange (BSE), the IndusInd Bank stock dropped to as low as Rs. 1,232.00, marking a fall of 5.92 per cent from its previous close. benchmark Sensex index which was down 0.79 per cent.
Prasanta Patnaik