BENGALURU: India’s IndusInd Bank reported a quarterly profit drop on Monday, as its loans declined and funds kept aside for potential bad loans rose.
The country’s fifth largest private lender by assets said its profit fell 68% to 6.84 billion rupees ($78.93 million) for the quarter ended June 30.
IndusInd reported its biggest-ever quarterly loss in the previous quarter, as it took a $230 million hit in the year ended March 31 due to years of misaccounting internal derivative trades, prompting the resignations of CEO Sumant Kathpalia and deputy Arun Khurana in April.
Since then, the lender has reported a decline in loans.
Loans fell 3.1% from a quarter earlier, while deposits fell 3.3%.
Net interest income, the difference between interest earned and paid, fell to 46.40 billion rupees from 54.08 billion rupees a year earlier.
The private lender has been grappling with elevated bad loans in its microfinance book, forcing it to set aside more funds to meet potential losses.
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Its provisions and contingencies rose 65.5% year-on-year to 17.38 billion rupees.
Gross non-performing assets rose to 3.64% at June-end from 3.13% at March-end.
IndusInd Bank approved raising up to $3.47 billion and allowing promoters to nominate two board directors, it said last week, as it seeks to restore investor confidence.