The profitability was impacted on account of high provision which stood at Rs 1,561 crore against Rs 336 crore in Q4FY18. The entire exposure to the IL&FS
became NPA and total additional provisions of Rs 1,120 crore were provided on this during the quarter.
In addition to that, the bank has reversed 2 quarters of interest amounting to Rs 153 crore. Also, the management clarified its exposure towards the other stressed assets which is at 1.9 per cent and all of them are standard at this point of time.
tried to address some of the investor's concern raised recently by disclosing exposure to stressed exposures at 1.9 per cent of the loans (13 per cent of net-worth) and providing details on corporate fees which seems to be granular and therefore risk of any sudden shock seems to be limited,” analysts at Antique Stock Broking said in result review.
“IL&FS account is largely dealt with and hence we expect IIB to return to normalcy of its earnings momentum. Deposits have shown impressive performance after moderating for last 6-7 quarters. Management is hopeful for strong liability growth backed by focus on retail term deposits. Loan book growth should continue to grow more than 25% going ahead and NIM is expected to return to normalcy. Management expects credit cost to be under 60 bps in FY20,” analysts at Narnolia Financial Advisors said in result update.
At 10:14 am, IndusInd Bank
was up 6 per cent at Rs 1,610 on the BSE, as compared to 1.9 per cent rise in the S&P BSE Sensex.
A combined 4.5 million shares have changed hands on the counter on the BSE