About the Company:
IndusInd Bank Limited is a Mumbai based Indian new generation bank, established in 1994. The bank offers commercial, transactional and electronic banking products and services.
QoQ & YoYPerformance:
India’s mid-level private bank has declared the results for the fourth quarter of financial year ending March 2020.
- Net Interest Income: NII is the difference between interest earned and interest expended that is the key factor for bank’s financial health status, which is increased 5.11% QoQ while on YoY basis, there is an increase of 44.74% growth in interest expended is grown more than interest earned.
- Net Profit After Tax: On QoQ basis, the bank has posted 75.93% down PAT while on YoY basis, there is an plunge of 12.32%.
- Provisions and Contingencies: Bank's provisions and contingencies are landed to Rs 244,032 Lakhs are increased by 133% QoQ and sharp increase in 56% YoY.
- Net NPA: Net NPA ratios are fell by 13.33% QoQ and 24.79% YoY.
- Dividend Payout:The Board of Directors has not recommended any dividend due to ongoing lockdown.
As per Lokesh Sethia, SEBI Registered Research Analyst, despite the ongoing lockdown and suspended economic acivities the bank has posted a sharp increase in NII numbers. Net profits of the bank have been plunged sharply. Asset quality is vulnerable for potential investors. Provisions of the bank expand more than double that will be a major concern for the investors. We recommend it to “Avoid” the stock in current scenario.