On Monday, post trading hours, IndusInd Bank reported a 12.31 per cent dip in its consolidated profit after tax at Rs 315.25 crore for the quarter ended March 2020 due to an increase in loan loss provisions.
Its overall provisions jumped to Rs 2,440 crore as against Rs 1,560 crore in the year-ago period, which dented the bottomline the most.
The scrip zoomed 15.11 per cent to close at Rs 468.90 on the BSE. During the day, it advanced 18 per cent to Rs 480.90.
At the National Stock Exchange (NSE), it rose sharply by 17 per cent to close at Rs 476.95.
IndusInd Bank was the top gainer in the Sensex and Nifty pack.
The company's market valuation also rose by Rs 4,288.76 crore to Rs 32,520.76 crore on the BSE.
In traded volume terms, 30.59 lakh shares were traded on the BSE and about 6 crore on the NSE.
On a standalone basis, the net profit fell 16.17 per cent to Rs 301.84 crore during the January-March quarter as against Rs 360.10 crore in the year-ago period.
The bank's newly appointed chief executive and managing director Sumant Kathpalia 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 as per a RBI direction during the pandemic period.
Its overall gross non-performing assets (NPA) ratio jumped to 2.45 per cent of the total assets as against 2.10 per cent in the year-ago period on a consolidated basis.
In the background of the exposures to stressed assets in the infrastructure and non-bank lenders haunting its book, Kathpalia said the bank plans to move away from the riskier sectors, and will also reduce exposures to diversified groups going forward.
He said over 95 per cent of the retail borrowers, whose share in the overall loanbook has increased to 56 per cent now, repaid their loans for March, and the bank is pursuing them to continue doing so for April as well, pointing out that the RBI's moratorium will increase interest outgo.
The bank did not offer the scheme for corporate borrowers and very few of them have come forward asking for relief, he said, adding 75 per cent of small business owners have repaid their dues as per schedule till April. SUM RUJRUJ