IndusInd Bank Q2 profit rises 4.6% to Rs 920 cr

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New Delhi, Oct 15: Private sector lender IndusInd Bank has reported 4.6 percent year-on-year growth in second quarter profit to Rs 920.25 crore, dented by sharp rise in provisions.
Profit in the quarter ended September 2017 stood at Rs 880.1 crore. The bank said excluding one-off prudential contingent provision, profit increased 25 percent YoY.
Net interest income grew by 21 percent year-on-year to Rs 2,203.28 crore in Q2 with robust loan growth at 32.4 percent and deposit growth at 19 percent YoY.
The bank said net interest margin declined to 3.88 percent in September 2018 against 4 percent in same period last year.
Asset quality improved in the quarter ended September 2018 as gross non-performing assets (NPA) fell to 1.09 percent against 1.15 percent in previous quarter and net NPA declined to 0.48 percent against 0.51 percent QoQ.
In absolute terms, gross NPA increased 2.3 percent sequentially to Rs 1,781.4 crore and net NPA rose 3.3 percent to Rs 787.6 crore in second quarter of financial year 2018-19.
Provisions and contingencies shot up 68.6 percent sequentially and 101 percent year-on-year to Rs 590.27 crore in July-September quarter, IndusInd Bank said.
The bank has made a contingent provision of Rs 275 crore on certain infrastructure assets, which are standard assets.
Other income or non-interest income during the quarter grew by 11 percent to Rs 1,317.3 crore and operating profit surged 22 percent to Rs 1,992.44 crore compared to year-ago.