Private sector lender IndusInd Bank on Friday reported 38.3% jump in its net profit at ₹1,432.50 crore for the June quarter of this fiscal. The bank had posted a net profit of ₹1,035.72 crore in the corresponding period of the preceding fiscal ended March 2019.
The lender's net interest income rose to ₹2,844 crore, as compared to ₹2,122 crore in the year-earlier quarter.
Total income grew to ₹8,624 crore during the June quarter of 2019-20 under review, as against ₹6,369 crore in the same period of 2018-19, IndusInd Bank said in a regulatory filing.
On the asset front, the lender witnessed an uptick with the gross non-performing assets (NPAs) rising to 2.15% of the gross advances at the end of June 2019, as against 1.15% by end of June 2018.
Likewise, the net NPAs or bad loans too jumped to 1.23%, from 0.51% in the year ago period.
A rise in NPAs ratio led to a higher provisioning and contingencies at ₹430.62 crore for April-June, 2019-20, as compared to ₹350 crore set aside during the same period of the fiscal ended March 2019.
"While net interest income was in line with expectations, net profit numbers were much higher led by lower than expected provisions," said Mona Khetan, banking analyst at Reliance Securities.
The bank said the results for the first quarter of this fiscal includes the operating performance of Bharat Financial Inclusion Ltd (BFIL), which has been merged with the lender now.
"We have successfully completed the merger with BFIL. During this quarter, the Bank has witnessed healthy growth in its topline as well as in operating profits and will now push forward into the subsequent quarters basis our strong belief in new opportunities, especially in rural India," Romesh Sobti, MD & CEO, IndusInd Bank said in a statement.
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