IndusInd Bank down after results, but looks on course to record new highs

Last Updated: Tue, Jul 10, 2018 15:31 hrs
IndusInd Bank

Mumbai: Private sector lender IndusInd Bank has reported its first quarter results, that is largely in line with expectations.

The bank announced today that posted a net profit of Rs 1035 crore in the first quarter of financial year 2018=19, up 23.8% over its net profit in the year-ago quarter.

The bank's net interest income was up 20% at Rs 2122 crore in the first quarter. More importantly, the bank's asset quality remained stable. Net interest margin for the quarter was 3.92%, slightly lower than previous quarter's 3.97%.

The bank's gross non-performing asets as a percentage of total loans edged up to 1.15% in the June quarter, as against 1.17% in the preceding quarter. Gross non-performing assets rose 2%  (in absolute terms) to Rs 1741 crore.
Net NPA was up 2.2% to Rs 762 crore.

The bank made provisions for bad loans to the tune of Rs 350 crore, up 4% from the Rs 335 crore it had provided in the preceding quarter.

During the first quarter, IndusInd Bank's total advances increased 29% to Rs 1.5 lakh crore, over the year-ago quarter. Deposits saw a 19% growth in the quarter and the bank's capital adequacy ratio in the quarter was 14.7%.

Despite the numbers turning out to be fairly impressive, the IndusInd Bank stock is down in negative territory at Rs 1938, with a loss of about 1%. Earlier, the stock had eased to Rs 1924 post announcment of quarterly results.

The stock opened with a positive gap of nearly 2% at Rs 1994 on BSE - it remained the day's high - but turned sluggish immediately thereafter and dropped down to Rs 1924 after announcement of results. It is currently down 1% at Rs 1934.50.

On BSE, the counter has clocked a volume of a little over 1 lakh shares, about 2.5 times the average daily volume of 41,000 shares.

The stock touched a 52-week high of Rs 1995 on June 27, and despite the mild setback today, looks well on course to move past that mark sometime soon, given the bank's fairly stable asset quality.