NE BUSINESS BUREAU
MUMBAI, APRIL 28
The Mumbai-based private lender IndusInd Bank on Monday reported a 77 percent decline in standalone net profit at Rs 301.84 crore in the January-March quarter of Q4FY20, against Rs 1,300.2 crore clocked in the December quarter of current fiscal (Q3FY20). On a consolidated basis, the net profit was Rs 315.25 crore, a bank release said.
The bank’s earnings are not comparable yearly owing to its merger with Bharat Financial in July 2019. In Q4FY19, the PAT stood at Rs 360.1 crore.
The lender, which reported its first quarterly result since its new chief executive officer (CEO) Sumant Kathpalia took over, set aside massive provisions at Rs 2,440 crore. It was a 133.82 percent jump from Rs 1,043.5 crore provided for in Q3FY20.
To cushion against the uncertainties arising due to the outbreak of the coronavirus (Covid-19) pandemic, the bank has provided for Rs 260 crore under the provisions and contingencies segment.
“The extent to which the Covid-19 pandemic will impact the bank’s operations and financial results is dependent on future developments, which are highly uncertain. In this backdrop, during the quarter and year ended March 31, 2020, the Bank has made a countercyclical buffer/ floating provision of Rs 260 crores,” it said.
Besides, in light of the moratorium extended by the Reserve Bank of India (RBI) with regards to providing relief to borrowers on account of Covid-19 pandemic, the bank has set aside provision of Rs 23 crores during the quarter and year ended March 31, 2020.
The bank’s net interest income (NII) stood at Rs 3,231.2 crore during the recently concluded quarter, up 5.1 per cent from Rs 3,074.02 crore clocked in Q3FY20.
