Indusind Bank

This private sector bank holds steadfast to the ritual of being the first bigwig and the bank to announce results.

For Q1FY18, the Bank did not disappoint on the asset quality front but on asset quality, the deterioration continued for the second consecutive quarter. Its net profit for the first quarter was up 26% (YoY) at Rs.836 crore , driven by a 31% increase in NII at Rs.1774 crore and other income rose 20% to Rs.1167 crore. CASA ratio bettered from 34.43% to 37.78%.

On the asset quality front, Gross NPA rose from 0.93% to 1.09% (QoQ) while Net NPA rose from 0.39% to 0.44%. Provision for bad debts was up 34% (YoY) but down 28% sequentially at Rs.310 crore.

Out of the ‘dirty dozen’ named by RBI, IndusInd stated that it has exposure to three accounts to the tune of Rs.50 crore – Monnet Ispat, Bhushan Steel and Jyoti Structures. It has made 100% provisioning for two of these and 50% for one.

CAR rose from 15.31% to 16.18% (QoQ). The market was not too perturbed by the asset quality as it figured that compared to other worms which might tumble out from rotten wood, this Bank is much better off.