INDUSIND Q3 PROFIT SLUMPS 90% ON MFI STRESS

Private sector lender IndusInd Bank on Friday reported a 90 per cent drop in its December quarter net profit to Rs 127.98 crore, as it witnessed higher stress in the microfinance book and degrew loan book under the new management.

- CORRESPONDENT

The Hinduja group-promoted bank, which has had a challenging few quarters that saw the discovery of fraud and ensuing change in top leadership, had reported a loss of Rs 437 crore in the preceding September quarter. The bank has begun a “rightsizing” of its balance sheet, which involves shedding inefficient assets and expensive liabilities such as bulk deposits, its managing director and chief executive Rajiv Anand said, adding that it aims to grow in line with the system in FY27.

The core net interest income dropped 13 per cent to Rs 4,562 crore on the back of a 13 per cent de-growth in advances.

The bank's loan-book degrew 13 per cent on-year and 3 per cent on-quarter, and the net interest margin widened by 0.17 per cent to 3.52 per cent. The bank management attributed the widening in NIMs to interest on income tax refund and added that, excluding the one-off, the number stood at 3.35 per cent.

Anand exuded confidence of maintaining the NIMs going forward as well, despite the rate cuts from RBI.