IndusInd Bank, for Q1FY21 posted a 68% (YoY) decline in net profit at Rs.461 crore despite a 16% rise in NII at Rs.3309 crore. This was mainly on account of the five times jump (YoY) in provisions at Rs.2259 crore though sequentially, it was down over 7%.
Its pre-provision operating profit rose 10% at Rs 2,861 crore.
The Bank said that during the quarter, it made an internal assessment of the impact of the pandemic basis the current level of economic activities and the projected trajectory for the near future and made a countercyclical buffer / floating provision of Rs 500 crore, over and above Rs 260 crore made during the quarter ended March 2020.
In terms of asset quality, Gross NPA rose from 2.45% to 2.53% while Net NPA fell from 0.91% to 0.86%.
On the loan moratorium front, in current Q1, 16% of the loan book was under moratorium v/s 50% in April.
Another news – it approved issue of over 4.76 crore equity shares on preferential basis to Route One Offshore Master Fund, ICICI Prudential Life Insurance Company, Tata Investment Corporation and AIA Company at issue price of Rs 524 per share and raised Rs 2,496 crore.
Another 1.51 crore equity shares have been approved to issue to promoter IndusInd International Holdings and Hinduja Capital on a preferential basis, at the same price of Rs.524/share.
The market is looking beyond these numbers and probably feels it has taken the worst brunt yet; the stock opened 1% higher at Rs.532.35 and rose 7% to Rs.563.75. It has come off this high of the day and is now trading at Rs.547 levels, nevertheless in the green.