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IndusInd Bank Profit Tumbles 88% Amidst Setbacks
23 Jan
Summary
- IndusInd Bank's Q3 net profit dropped 88.5% YoY to Rs 161 crore.
- Net interest income fell nearly 13% YoY, while provisions increased.
- CEO cited microfinance sector slippages as a key contributing factor.
IndusInd Bank experienced a drastic 88.5% year-on-year decrease in its standalone net profit for the third quarter of the current fiscal year, reporting Rs 161 crore. This figure fell below the Rs 272 crore projected by analysts. The bank had previously reported a net loss of Rs 445 crore in the second quarter.
Net interest income, a crucial measure of profitability, declined by 12.7% compared to the same period last year, although it showed a 3% increase from the previous quarter. Provisions also rose by 19.8% year-on-year.
Chief Executive Officer Rajiv Anand noted that slippages from the microfinance sector continued to impact results. He also reassured stakeholders that the bank does not foresee a need for capital raising in the near term. Shares of IndusInd Bank saw a slight dip ahead of the earnings announcement.
