IndusInd Bank Q4 profit rises 21% to Rs751.61 crore
- Author: Zachary Reyes Apr 19, 2017,
Apr 19, 2017, 23:55
Interest earned rose to Rs 3,830 crore for the March quarter, up 19.41 per cent YoY from Rs 3207.36 crorereported for the same quarter previous year.
Motilal expected net profit of Rs 761.7 crore in Q4 increasing by 22.77% yoy and 1.47% qoq, while net interest income was seen at Rs 1,620.5 crore rising by 27.77% yoy and 2.66% qoq. The bank disclosed in its notes, that NPA includes one borrower with gross exposure of 0.69 percent of gross advances (Rs 911.5 crore) and net exposure of 0.52 percent (Rs 683.6 crore) of net advances.
Absolute gross non-performing assets (GNPA) stood at Rs 1,054.87 crore against Rs 776.82 crore of Q4FY16 and Rs 971.62 crore of Q3FY17.
Even though the bank managements did not name the company, sources said this relates to the exposure to Jaypee Cements, which is all set to be acquired by UltraTech in a Rs 16,200-crore deal.
It has not factored for any equity sale during the three year-period and will focus on raising capital from the additional tier-I capital, from where it has raised Rs 2,000 crore in two tranches recently, he said.
This led to a jump in overall provisions to Rs 309.7 crore from Rs 186.6 crore in the year-ago period and Rs 115.38 crore in the preceding December quarter, and a fall in the provision coverage ratio to under 50 per cent.
He said the cement company exposure is a "bridge loan" which is standard and performing, but the Reserve Bank has asked it to provide more because the company's parent is showing stress and has been recognised as sub-standard.
Asset quality for the bank remained stable on a sequential, as well as year-on-year basis.
Specific provision held in this account is Rs 227.9 crores.
Sobti said the bank is targeting the loan growth to sustain above the 25 per cent mark for each of the three years.
The private lender also announced a dividend of Rs 12 per share on Wednesday. The stock of Yes Bank slipped 0.03 per cent to Rs 1,605.40 on BSE.