Private sector lender, IndusInd Bank, on Monday reported a 4.5 percent growth in net profit at Rs 920.25 crore for the July-September quarter compared to the year-ago period.

The bank had a net profit of Rs 880.10 crore in the second quarter of last fiscal. Total income of the bank rose to Rs 6,755 crore during the September quarter, from Rs 5,395 crore in the same period in 2017-18 fiscal, IndusInd said in a filing to BSE.

Lalitabh Shrivastawa, assistant vice president - Research, Sharekhan, said, "On topline front, it seems to be largely in-line. The rise in provision, which has slightly tented bad growth, one would be looking at what exactly has happened in that since on a quarter-on-quarter basis, this is nearly doubled. So, one will have to look at that."

“Very clearly, the provisioning number is inflated to the extent of the Rs 270 crore that they have taken for IL&FS project. That to my mind should explain the difference between expectations and both the actual numbers. I am still surprised that still IL&FS is classified as a standard asset, but having provided for that is a prudent measure taken," said, Krishnan ASV, vice president, SBICAP Securities.

“Bottomline miss is largely due to extra provision that they have taken during this quarter. As a prudent measure, possibly that hangover of exposure towards IL&FS should not be an issue going ahead for IndusInd. So, not worried from asset quality point of view as of now," said Siddharth Purohit, research analyst, SMC Institutional Equities

"Loan growth has been much better than what I had expected. Cost of fund might have gone up, so fairly decent number out there and a very prudent measure of taking additional provision. So, not too much worried about the asset quality,” he added.

First Published:Oct 15, 2018 3:54 PM IST