The marginal increase in net profit can be accredited to the impact of Rs 255-crore stipulation on its IL&FS exposure, which shrunk its bottom-line growth to a tepid 4.6 percent in the September quarter as well.
The Induslnd Bank stock tanked in trade today after the private sector lender reported a marginal 5.2 percent rise in net profit to Rs 985.03 crore for the third quarter broken December 31, 2018. The marginal increase in net profit can be accredited to the crash of Rs 255-crore condition on its IL&FS introduction, which shrunk its outcome enlargement to a tepid 4.6 percent in the September district as well.
The stock was the top Sensex and Nifty loser in trade today.
The bank recorded a net profit of Rs 936.25 crore in the October-December quarter of last fiscal.
The Induslnd Bank stock fell up to 2.86% or 45 points to 1555 level compared to the previous close of 1600.80 on the BSE.
The large-cap stock has fallen after three days of uninterrupted gains. It has lost 9.44% during the last year.
36 of 46 brokerages rate the stock "buy" or 'outperform', and 10 "hold", according to analysts' recommendation tracked by Reuters.
The stock is trading below its 50-day and 200-day moving averages of 1586.36 and 1734.42, respectively.
Total income of the lender increased to Rs 7,232.32 crore during October-December 2018 as against Rs 5,473.54 crore over the analogous period of the previous fiscal, Induslnd Bank said.
The gross non-performing assets (NPAs) declined to 1.13 percent of the total advances during the third quarter of the current fiscal, against 1.16 percent at the end of the third quarter.
However, net NPAs of the bank rose to 0.59 percent in the quarter from 0.46 percent of the total assets.
Loan experience to the troubled infra financier IL&FS sustained to depress Induslnd Bank's earnings for the second quarter in a row, as supplies for this account has led the lender Wednesday report a sharp decline in profit growth for the December quarter.
The crippled company, which is being run by a government-appointed board since October, owes Rs 3,000 crore to the company and has not been serviced since October, making it an SMA 2 account.
The Hinduja group-controlled bank was known for booking 20-25 percent profit growth quarter after quarter for years. Even during the note-ban quarter the one after it, the lender had one of the best sets of numbers.
