IndusInd Bank on Monday reported a 12.31 per cent dip in its consolidated profit after tax at Rs 315.25 crore for the March quarter of 2020 because of an increase in loan loss provisions.

On a standalone basis, the net profit fell 16.17 per cent to Rs 301.84 crore during the quarter against Rs 360.10 crore in the year-ago period.

The bank’s overall provisions jumped to Rs 2,440 crore from Rs 1,560 crore in the year-ago period, which dented the bottomline the most.

Sumant Kathpalia, the bank’s newly appointed chief executive and managing director, said the provisions included a floating provision of Rs 260 crore for Covid-19 related impact on asset quality and Rs 23 crore for accounts which are unrecognised as non-performing assets according to directions from the RBI during the pandemic period.

The overall gross non-performing assets (NPA) ratio jumped to 2.45 per cent of the total assets from 2.10 per cent in the year-ago period on a consolidated basis.

HDFC Life

HDFC Life on Monday reported a 14.3 per cent decline in its net profit at Rs 311.71 crore in the March quarter because of a fall in investment income.

In the year-ago period, it had reported a profit after tax of Rs 364.01 crore.

The investment income fell to negative Rs 10,229.92 crore in the quarter against an income of Rs 3,755.6 crore in the year-ago period.

Kathpalia said the bank's risk team has done a detailed assessment of the pandemic, under which it expects economic activity to restart in 50 per cent of the country by the third week of May, another 25 per cent by mid-June, and by early July for the remaining 25 per cent.

IndusInd Bank on Monday reported a 16 per cent decline in its standalone net profit at Rs 301.74 crore for the March quarter of 2020 on higher provisioning.

The bank had posted a net profit of Rs 360.10 crore during the corresponding quarter of 2018-19.

Total income (standalone) during the March quarter of 2019-20, however, rose to Rs 9,158.57 crore from Rs 7,550.43 crore in the same period of the preceding financial year, the private sector bank said in a regulatory filing.

The lender’s provisioning for bad loans and contingencies stood at Rs 2,440.32 crore during the quarter, substantially higher than the Rs 1,560.69 crore it had parked aside in the year-ago period.

On the asset front, the gross non performing assets (NPAs) stood higher at 2.45 per cent of the gross advances as on March 31, 2020 compared with 2.10 per cent a year ago.

Net NPAs or bad loans were, however, lower at 0.91 per cent against 1.21 per cent.

During the December quarter, the bank recognised the exposure in respect of two entities with an outstanding of Rs 960.89 crore as fraud and provided in full, in accordance with the RBI norms, by debiting Rs 240.22 crore to the profit and loss account and Rs 720.67 crore to the balance in P&L account under ‘Reserves and Surplus’.

Shares of the bank on Monday closed 6.33 per cent lower at Rs 407.35 apiece on the Bombay Stock Exchange.

“In accordance with the RBI... the bank has charged to the Profit and Loss account an amount of Rs 240.22 crore during the quarter ended March 31, 2020 and a total amount of Rs 480.44 crore during the year ended March 31, 2020,” it said. The balance amount will be reversed to P&L account in the ensuing quarters in the financial year 2020-21, it added.