MUMBAI: IndusInd Bank on Thursday reported a 27 per cent increase in its net profit at Rs 953 crore for the quarter ending March 2018. For the full fiscal FY18, the bank’s profit rose by 26 per cent at Rs 3,606 crore.The private lender also reported a divergence in Non-Performing Assets (NPA) at Rs 1,350 crore for FY17. Originally, the bank reported gross NPAs of Rs 1,054 crore, but as per the RBI assessments, they stood at Rs 2,405 crore. Consequently, the net impact of the divergence during the quarter under review stood at Rs 186 crore.
The bank’s net interest income from operations rose 20.4 per cent to Rs 2,008 crore during the March quarter, while for the entire fiscal, it surged by 24 per cent to Rs 7,497 crore. Net interest margin was stable at 3.97 per cent. Gross NPAs rose 14 per cent sequentially in absolute terms to Rs 1,705 crore, while provisions for bad loans increased to Rs 335 crore against Rs 236.2 crore in the previous quarter. However, the gross NPA ratio remained flat at 1.17 per cent during the quarter ending March, against 1.16 per cent in the December quarter.
Meanwhile, Romesh Sobti, MD & CEO, IndusInd Bank, said the new stressed assets resolution framework would increase bad loans for banks, but quickly added that the RBI was justified in asking banks to identify stressed accounts immediately upon default agencies.IndusInd has a `385-crore exposure to six of the 40 stressed accounts identified by the RBI for insolvency proceedings and has made an aggregate provision of 65 per cent against these accounts. Sobti also clarified that the bank has no exposure to Nirav Modi firms, but had a small legacy exposure to Gitanjali Gems, which is classified a fraud account.