Shares of IndusInd Bank declined sharply by over 4% in morning trade after the lender reported a weak set of results for the third quarter, marked by a steep fall in profit and continued pressure on core income. While asset quality indicators remained largely stable on a sequential basis, higher provisioning and lower net interest income weighed on overall performance.
For the third quarter, IndusInd Bank reported a net profit of ₹128 crore, registering a decline of 90% year-on-year compared with ₹1,402 crore in the corresponding quarter of the previous financial year.
Net Interest Income declined 12.7% year-on-year to ₹4,561.7 crore, compared with ₹5,228 crore reported in the same quarter last year.
On the asset quality front, the gross non-performing asset ratio stood at 3.56% in Q3, marginally lower than 3.60% reported in the previous quarter, indicating a slight sequential improvement. The net NPA ratio was reported at 1.04% on a quarter-on-quarter basis.
Provisioning expenses increased 20.2% year-on-year to ₹2,095.8 crore during the quarter, compared with ₹1,743.6 crore in the same period last year.
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