Private sector lender IndusInd Bank kicked off the first quarter earnings season on a strong note by reporting a 26 per cent jump in its quarterly net profit.
IndusInd Bank reported a net profit of Rs 661 crore in the quarter ended June 30, 2016, as compared to Rs 525 crore in the corresponding period a year ago, aided by a strong jump in net interest income.
IndusInd Bank reported a net interest income of Rs 1,356 crore in the June quarter, as compared to Rs 980 crore in the year-ago period, on the back of a 30 per cent growth in advances.
Analysts in an poll had expected the private sector lender to report a net profit of Rs 653 crore on net interest income of Rs 1,269 crore.
The net interest margin of the bank improved to 3.97 per cent in June quarter from 3.94 per cent in March quarter.
Gross non-performing assets edged up to Rs 860 crore (0.91 per cent of total advances) in the June quarter from Rs 776 crore (0.87 per cent of total advances in March quarter.
Its net non-performing assets (NPAs) as a percentage of total advances ticked up sequentially to 0.38 per cent in June quarter from 0.36 per cent in March quarter.
The stock saw some profit-taking after the results were announced. Traders said the increase in NPAs weighed on the stock. At 2:50 p.m., IndusInd Bank shares were trading 0.36 per cent lower at Rs 1,122.75 apiece on the BSE, whose benchmark Sensex index was up 1.7 per cent.