Brokerages give a thumbs down to IndusInd Bank’s numbers
Provisions and contingencies jumped 24.97 per cent on a yearly basis to Rs 737.71 crore.
IndusInd on Thursday reported a 52.2 per cent YoY rise in consolidated net profit in the September quarter at Rs 1,401 crore, compared to ETNow poll which had projected a profit of Rs 1,404 crore. The stock ended down 0.5 per cent at Rs 1,223.25 on Friday.
Provisions and contingencies jumped 24.97 per cent on a yearly basis to Rs 737.71 crore. Asset quality of the lender deteriorated with a percentage of gross non-performing assets jumping to 2.19 per cent from 1.09 per cent last year. The figure stood at 2.15 per cent in the preceeding quarter ended June 30. Percentage of net NPA also increased to 1.12 per cent from 0.48 per cent.
“...the balance sheet is showing clear signs of deterioration owing to systemic liquidity issues...Riskreward is better than earlier though not enough to merit an upgrade,” said Jefferies.
Shares of IndusInd Bank have fallen 23.2 per cent this year compared to the Bank Nifty which is up 11.6 per cent during the same period.