Mumbai: Private sector lender IndusInd Bank on Monday reported 77 per cent sequential decline in its net profit at Rs 302 crore in the March quarter of FY20 against Rs 1,300 crore in the December quarter.
The bank’s earnings are not comparable on a yearly basis owing to its merger with Bharat Financial in July 2019. In Q4 FY19, the profit after tax stood at Rs 360 crore.
“During the quarter ended December 31, the bank recognised exposure in respect of two entities with an outstanding of Rs. 960.89 crore as fraud,” the bank said in a statement without naming them.
The lender set aside massive provisions at Rs 2,440 crore from Rs 1,044 crore provided for in Q3 FY20.
Besides, to cushion against the uncertainties arising due to the outbreak of coronavirus (COVID-19) pandemic, the bank has provided for Rs 260 crore under the provisions and contigencies segment.
“The extent to which COVID-19 pandemic will impact the bank’s operations and financial results is dependent on the future developments which are highly uncertain. In this backdrop, during the quarter and year ended March 31, the bank has made a counter-cyclical buffer and floating provision of Rs 260 crore,” it said.
IndusInd Bank’s net interest income totalled Rs 3,231 crore during January to March, up 5.1 per cent from Rs 3,074 crore clocked in Q3 FY20.
