InvestorQ : Why has IndusInd Bank reported such a sharp fall in profits in the March 2020 quarter?
Katherine Gonsalves made post

Why has IndusInd Bank reported such a sharp fall in profits in the March 2020 quarter?

Answer
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Rutuja Nigam answered.
6 months ago


IndusInd Bank reported 77% fall in net profits for the March 2020 quarter at Rs.302 crore. This is sharply lower than the street estimates and has been impacted by higher provisions and lower level of other income. It could have been a lot worse had it not been for the benefit of the concessional tax regime. Numbers on a YOY basis are inclusive of the integration of Bharat Financial Inclusion, which was merged in July 2019. The net interest income (NII) was up 5.1% at Rs.3231 crore. The real culprit was the ‚ÄúProvisions and Contingencies‚ÄĚ header which shot up by 134% to Rs.2440 crore for Marr-20 quarter. Gross NPAs were higher by 27 bps at 2.45% but most analysts do not give too much credence to this figure.