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IndusInd Bank shares drop after June-quarter turnaround earnings
Q1 profit rose to ₹1,037 crore from ₹604 crore a year earlier, but loans were still down 2.3% year over year and the stock fell more than 5% on Thursday.
LiveMint Markets reports IndusInd Bank shares fell more than 5% on Thursday, following June-quarter results that the market viewed as an early turnaround rather than proof that the recovery is fully underway.
The bank posted Q1FY27 net profit of ₹1,037 crore, up from ₹604 crore a year earlier, helped by a return to sequential loan growth and improving asset quality after prior quarters of correcting issues tied to overstated microfinance incomes and misclassified loans.
IndusInd said loans grew 3.3% sequentially to ₹3.26 trillion and the gross NPA ratio improved 18 basis points to 3.25%, with management indicating credit costs could still decline as legacy stress unwinds.
Still, growth signals were mixed: Q1 advances fell 2.3% year over year, and while reported net interest margin rose nearly 20 basis points sequentially to 3.57%, it fell 4 basis points to 3.35% when adjusted for interest on tax refunds due to a higher share of low-yielding wholesale loans.