IndusInd Bank's corporate loan book grew faster than the retail one in the March quarter and within the retail loan book, the growth of commercial vehicle (CV) loans, a high-interest yielding segment, remained flat.
In compliance to a Reserve Bank notification, IndusInd Bank and YES Bank made provisions of Rs 122 crore and Rs 228 crore respectively, for their exposure to this cement company. But IndusInd Bank's MD and CEO Romesh Sobti has said that there is a high probability of this one-off provision being reversed in a month's time.
Asset quality was nearly stable during the quarter with gross non-performing assets (NPA) in percentage terms standing at 1.05% compared to 0.97% in Q3FY16 and 1.02% in Q2FY17. Among US stocks, the Dow industrials and the S&P 500 ended lower yesterday, 19 April 2017 as a drop in oil prices fueled a selloff in energy shares while a drop in International Business Machines Corp. was responsible for half the session's losses in the blue-chip average. Post the bank's earnings announcement, Bharat Financial's shares rose over 2%.
Exposure to a single cement company burned a Rs 350-crore hole in the net profits of IndusInd Bank and YES Bank, both private banks otherwise known to have better asset quality controls.
City Hall Proposes Highest Tobacco Prices in Nation to Snuff Smoking Rates
He said his goal is to reduce the number of smokers in the city by 160,000 over the next three years. Bassett said in an emailed statement. "But it's a real, it's a real thing".
Net Interest Margin (NIM) for the current quarter is 4.00% as against 3.94% in the corresponding quarter of the previous year.
G Chokkalingam, Founder of Equinomics Research and Advisory, said: "HDFC Bank may report 17-18 per cent year-on-year (YoY) growth in bottom line with stable asset quality". The bank however has said that it expected this to be recovered in near term.
Net Interest Income saw growth of 17.55% to Rs 8,309.09 crore in Q4 versus Rs 7,068.51 crore in Q3FY16. Pre-provision operating profit is likely jump from Rs 5,734 crore to Rs 6,623 crore.
Most of India's banks will brace themselves for another tough Q4FY17, as weak loan growth and no clear resolution to the stubborn problem of high levels of non-performing assets.