IndusInd Bank reports good results; Stock's long term prospects remain bright

Last Updated: Thu, Oct 12, 2017 16:10 hrs
IndusInd Bank (AFP image)

IndusInd Bank, one of the leading private sector banks in the country, announced during trading hours today that it posted a net profit of Rs 880.10 crore in the quarter ended September 2017, up almost 25% compared to its net profit of Rs 704.26 crore in the corresponding quarter of the previous year.

Total income of the bank increased 21.08% to Rs 5395.52 crore in the second quarter of this financial year, over the year-ago quarter. Interest earned for the quarter was up 20.73% YoY at Rs 4208.35 crore, from Rs 3485.73 crore in the same quarter last year.

Net interest income for the quarter was Rs 1821 crore, up 24.7% from Rs 1460 crore reported for the second quarter of the previous financial year.

IndusInd Bank's gross non-performing assets increased to Rs 1345.28 crore as on 30 September 2017, up from Rs 1271.68 crore as on 30 June 2017. After the second quarter of the previous financial year, Gross NPAs were Rs 899.01 crore.

The ratio of gross NPAs to gross advances came in at 1.08% as on 30 September 2017, slightly down from 1.09% at the end of the preceding quarter and up from 0.9% at the end of the second quarter of the previous financial year.

The ratio of net NPAs to net advances stood at 0.44% as on 30 September 2017, unchanged from the previous quarter. It was 0.37% as on 30 September 2016. Provisions and Contingencies were up 37.34% at Rs 293.75 crore by end of the second quarter of this financial year, from the year-ago quarter.

Last month, IndusInd Bank had signed an exclusivity agreement with Bharat Financial Inclusion Limited, the country's second-largest microfinance company, for a possible acquisition. The bank said today that the proposalis still under evaluation.

On BSE, IndusInd Bank shares rose to Rs 1750 this afternoon, gaining in strength, after having stayed quite sluggish till an hour past noon. It eventually ended the session at Rs 1742.60, gaining about 1.5%.

On the National Stock Exchange, the stock ended up 1.75% at Rs 1747, off the day's high of Rs 1750. The stock recorded its 52-week high of Rs 1818 on BSE on 12 September 2017. On NSE, its high was Rs 1804, recorded on 11 September 2017.

On the National Stock Exchange, the IndusInd Bank counter recorded a volume of more than 2.43 million shares today. On BSE, nearly 1.1 lakh shares changed hands at the counter, compared to average daily volume of about 38,000 shares.

Although the stock was an underperformer in the last one month and even the last one quarter, its performance over the past one year is something to cheer about as it gained more than 40%, compared to the BSE benchmark's 13.4% rise.

The stock may see some weak spells now and then, but remains a safe investment option for investors looking at medium to long term.

More from Sify: