IndusInd Bank could see asset quality deteriorate as a result of the disruption to the economy after the COVID-19 outbreak, MD and CEO Sumant Kathpalia said Monday. Speaking to the media in his first post-results interaction, Kathpalia indicated the private sector lender’s credit costs could go up to as much as 180 basis points (bps); in a business-as-usual scenario, the lender’s credit cost would have ranged around 120-130 bps, he said.
Kathpalia said offering projections on loan growth, at this juncture, would be incorrect. “I somehow think all of us are in this situation of perfecting our balance sheet and making sure our collections are on track and our portfolio remains as an asset. We are not seeing any high delinquencies.”
IndusInd Bank’s net profit fell 16 per cent year-on-year (y-o-y) to Rs 302 crore in the March quarter as a result of higher provisions. Its net interest income increased 45 per cent y-o-y to Rs 3,231 crore and net interest margin increased 10 bps sequentially to 4.25 per cent. Total advances grew 11 per cent y-o-y to Rs 2.07 lakh crore as on March 31, 2020 and total deposits rose 4 per cent y-o-y to Rs 2.02 lakh crore. —FE
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