IndusInd Bank on Monday reported a 16 per cent decline in its standalone net profit at Rs 301.74 crore for the quarter ended March 2020, on higher provisioning.
The bank had posted a net profit of Rs 360.10 crore during the corresponding January-March quarter of financial year 2018-19.
Total income (standalone) during March quarter of 2019-20, however, rose to Rs 9,158.57 crore as against Rs 7,550.43 crore in the same period of the preceding fiscal 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 from Rs 1,560.69 crore it had parked aside in the year-ago period.
On asset front, the gross non performing assets (NPAs) stood higher at 2.45 per cent of the gross advances as on March 31, 2020 as compared with 2.10 per cent a year ago.
Net NPAs or bad loans were, however, lower at 0.91 per cent as against 1.21 per cent.
IndusInd Bank said that during the quarter ended December 31, 2019, it recognized 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 crores to profit and loss (P&L) account and Rs 720.67 crore to balance in P&L account under 'Reserves and Surplus'.
"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.
Shares of the bank on Monday closed 6.33 per cent lower at Rs 407.35 apiece on the BSE.