MUMBAI: Private lender IndusInd bank said its net profit growth for the quarter ended September was lower at 5 per cent year-on-year after it made a one-off contingency provision of Rs 275 crore on loan to the IL&FS group. IndusInd Bank said its core profit during the July-September quarter grew at 35 per cent year-on-year to Rs 1,034 crore, and its net profit growth after accounting for the contingency provision was up 5 per cent year-on-year at Rs 920 crore.
Total business for the quarter, including deposits and advances, grew 25 per cent year-on-year to Rs 3.31 lakh crore and net interest income rose 21 per cent to Rs 2,203 crore. Buoyed by good growth in vehicle loans and retail as well as corporate lending, overall credit growth for the quarter was up 32 per cent year-on-year, while deposit growth was 19 per cent.
Managing Director Romesh Sobti said the bank decided to take a precautionary contingency provision due to the speculation about IL&FS in a quarter when profits are good for the bank. He said their exposure was towards specific cash flows and well-identified, and if the resolution at IL&FS was successful, they might not take much of a hit on that loan.
“Our exposure is standard, interest and repayments met. Resolution plan is under way…. Because of the uncertainty around it we decided to voluntarily make contingent provision of `275 crore…. Because it is contingent provision it can be clawed back,” Sobti said.
IndusInd is also looking forward to completing the deal with IL&FS for takeover of its subsidiary IL&FS Securities Services (ISSL) “sooner than later”. Due diligence on ISSL has been completed and there is nothing wrong with the books, and all regulatory approvals are in place, Sobti said.The bank continues to lend to the non-banking finance sector, and there is no moratorium on loans to them.
Trident Q2 net jumps to Rs 109 crore
New Delhi: Trident Ltd on Monday reported an over two-fold jump in its stand-alone net profit to I109.14 crore for the quarter ended September 30, 2018. The company had posted a net profit of I50.90 crore in the same period of the previous fiscal, Trident said in a BSE filing. Stand-alone revenue from operations of the company rose to I1,391.50 crore for the quarter under consideration.
South Indian Bank posts Rs 70 cr profit
Mumbai: South Indian Bank on Monday reported a profit of I70.13 crore for the quarter ending September 30.
The bank had posted a profit of I4.32 crore during the July-September 2017 quarter.
As per a regulatory filing of the bank, the total income of the lender during the second quarter of the current fiscal was I1,854.4 crore as against I1,816.67 crore in the same period in 2017-18.
Indiabulls Housing Finance profit up 21 pc
Mumbai: Indiabulls Housing Finance (IBHFL) Monday reported a profit of I1,044.1 crore for the second quarter of the current fiscal, up 21.2 per cent over the year ago period.The company’s profit after tax was I861.3 crore during July-September quarter of 2017-18. As per the financial results, its total revenue was I4,255.27 crore in the second quarter compared to I3,452.45 crore in the year-ago period.