Private lender IndusInd Bank on Tuesday reported a rise of 99 per cent, on a year-on-year basis, in its consolidated net profit for the first quarter (Q1) of 2021-22.
Its net profit during the quarter under review rose to Rs 1,016 crore from Rs 510 crore in the corresponding period of last fiscal.
Net interest income for the quarter under review rose to Rs 3,564 crore, up by 8 per cent from Rs 3,309 crore for the quarter ended June 30, 2020.
As per the lender, net interest margin for Q1FY22 stood at 4.06 per cent from 4.28 per cent for Q1FY21 due to lower credit offtake and surplus liquidity placed under repo with the RBI.
Furthermore, the bank said the loan book quality was stable.
According to the bank, gross non-performing assets were at 2.88 per cent of gross advances as on June 30, 2021 as against 2.67 per cent as on March 31, 2021 and 2.53 per cent as on June 30, 2020.
"Net non-performing assets were 0.84 per cent of net advances as on June 30, 2021 as compared to 0.69 per cent on March 31, 2021 and 0.86 per cent on June 30, 2020."
"The bank strengthened its balance sheet by increasing provision coverage ratio to 72 per cent in June 2021 from 67 per cent in June 2020."
The bank reported that provisions and contingencies for the quarter ended June 30, 2021 were Rs 2,169 crore as compared to Rs 2,417 crore for the corresponding quarter of previous year 2020-21.
"The first quarter of this financial year witnessed spread and subsequent containment of Covid second wave across the country. The economy once again showed resilience with higher activity levels compared to the first wave, supported by effective fiscal and monetary support. IndusInd Bank also responded well to the changing situation with smooth client servicing," Managing Director & CEO Sumant Kathpalia said.
"The bank conducted nationwide vaccination drives to inoculate our employee base. The bank witnessed strong growth in its deposit base driven by CASA. The bank was cautious in the loan growth given the challenging operating environment. Our pre-provision operating profit was strong at Rs 3,185 crore."