/ IndusInd Q4 Net Rises 21% To Rs 752 Crore ~ Ways2Capital|Stock Tips|Stock Market Tips|Intraday Stock Tips|Stock Trading Tips|NSE BSE Tips

Thursday, 20 April 2017

IndusInd's net profit rose 21% to Rs 752 crore in the fourth quarter ended March 2017, boosted by both demand for loans as well as fee income. However, the profit was below what analysts had expected due to a one-off provision mandated by the Reserve Bank of India on a corporate bridge loan by the bank. 

The private lender had to set aside Rs 122 crore on a loan to Ultratech for the Rs 15,900-crore acquisition of Jaiprakash Associates' 21.2 million tonnes cement capacity because the deal is still pending. A Bloomberg poll of 24 brokers had estimated IndusInd's net profit at Rs 791 crore. 

The bank's managing director Romesh Sobti said that the loan is a standard one on the bank's book and scheduled for repayment in June this year. 

“The provision was due to a specific RBI advice on this account, though it's a performing loan in our book.The RBI's assessment was based on the risks associated with the sector and the group. We expect this deal to be completed and the provision to be reversed in May. 

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