IndusInd Bank reported a 40% year-on-year decline in consolidated net profit for Q2 FY25, amounting to Rs 1,331 crore, significantly missing market expectations. The decline was primarily driven by an 87% surge in loan loss provisions, which nearly doubled to Rs 1,820 crore. Additionally, rising operating expenses, including increased finance costs, outpaced the bank’s income growth. Analysts had estimated the Q2 net profit at Rs 2,207 crore, according to a Moneycontrol poll.
The bank’s net interest income (NII) rose 5% to Rs 5,347 crore, below the expected Rs 5,533 crore. The net interest margin fell to 4.08% from 4.29% in the previous year. Despite the profit decline, IndusInd Bank showed solid growth in loan and deposit figures, with loans up 13% and deposits up 15% year-on-year, while maintaining a healthy capital adequacy ratio of 16.51%. Asset quality saw slight deterioration, as the gross NPA ratio rose to 2.11% and net NPA to 0.64%.
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Source: Moneycontrol
News Desk
