Indusind Bank

Always the first bank to declare quarterly numbers, the market was not very happy with Indusind Bank’s Q1FY17 results. Though profitability improved on the back of strong net interest income and other income, asset quality slipped and provisioning rose – this in turn disappointed the market.

The Bank posted a 26% (YoY) rise in net profit at Rs.661 crore. NII rose 38% at Rs.1356 crore and margins improved from 3.68% to 3.97%.  Other income or non-interest income was up 28% at Rs.973 crore. Tax outgo during the quarter rose 25% at Rs. 342 crore.

In terms of asset quality, Gross NPA rose from 0.87% to 0.94% (QoQ) while Net NPA too increased from 0.36% to 0.38%. Provision for bad loans was up 87% (YoY) and up 8% sequentially at Rs.230 crore. Though this is nothing compared to the PSU banks, it was expected that IndusInd might actually show a marginal improvement.