It has been reported that the net profit of the private sector bank IndusInd has been jumped to 1432.50 crores during the first quarter of the financial year. During March in the previous financial year, the profit was 1035.72 crore that has jumped 38.3% in the 1st quarter of the current financial year.
Further, the net income of the lender rose to 2844 crore from 2122 crore. The total income has become 8624 crore in this quarter which was 6369 crore during the previous financial year. If you take a look at asset front, an uptick is recorded in non-performing assets to 2.15%. It was 1.15% during the previous year. Higher provisions and contingencies are also recorded due to a rise in NPAs. The provisions and contingencies set aside were 350 crores during the previous year while it is 430.62 crores this year in the first quarter.
The real reason that could lead to much higher profits this quarter is the operating performance of Bharat Financial Inclusion Ltd. (BFIL) that has been merged with IndusInd Bank. The merger was successfully completed and results can be seen in the form of healthy growth of the bank. It is believed that operating profits will push more and there will be many new opportunities, especially in rural India.