Synopsis
IndusInd Bank has reported a significant decline in net profit for Q3 FY25, reaching ₹1,402 crore, a 39% reduction from the previous year's ₹2,301 crore. The bank's performance was affected by increased provisions and a slight dip in core income, alongside deteriorating asset quality.Key Takeaways
- Net profit decreased by 39% year-on-year.
- Net interest income dropped to ₹5,228 crore.
- Gross NPA rose to ₹8,375 crore.
- Provision Coverage Ratio maintained at 70%.
- Total deposits grew by 11% year-on-year.
Mumbai, Jan 31 (NationPress) IndusInd Bank announced on Friday a net profit of ₹1,402 crore for the third quarter of the fiscal year 2024-25 (Q3 FY25), reflecting a 39 percent drop compared to ₹2,301 crore in the same quarter the previous year (Q3 FY24).
The bank's financial results were affected by increased provisions and a slight decrease in core income.
In Q3 FY25, the net interest income (NII), which indicates the difference between interest earned and interest paid, was ₹5,228 crore, showing a minimal decline of 1.2 percent from ₹5,295 crore in the corresponding quarter of last year.
The net interest margin (NIM), a crucial profitability metric, fell to 3.93 percent, down from 4.29 percent a year earlier and also lower than 4.08 percent in the preceding quarter.
IndusInd Bank's asset quality deteriorated, with gross non-performing assets (GNPA) rising to ₹8,375 crore, or 2.25 percent of total loans, as of December 31, 2024.
This was an increase from 1.92 percent GNPA recorded during the same period last year.
The net NPA also slightly rose to 0.68 percent from 0.64 percent in the prior quarter.
The bank maintained a Provision Coverage Ratio of 70 percent and allocated ₹1,744 crore for provisions and contingencies in this quarter, up from ₹969 crore in the equivalent period last year.
Total deposits of the bank increased by 11 percent year-on-year to ₹4,09,438 crore, while savings deposits witnessed a 6 percent rise.
IndusInd Bank has also expanded its branch network, operating 3,063 branches and 2,993 ATMs as of December 31, 2024. The total client base has reached 42 million.
The bank's stock experienced a 4 percent rise, closing at ₹995.20.
