IndusInd Bank: Provisions rise, NII beats.

IndusInd Bank reported a sharply improved financial performance for the third quarter (October-December), posting results that comfortably beat Street expectations. The lender reported a net profit of ₹128 crore, much higher than the CNBC-TV18 poll estimate of ₹42 crore. However, on a year‑on‑year (YoY) basis, profit fell 90% from ₹1,402 crore due to elevated provisioning.

Net interest income (NII) for the quarter came in at ₹4,561.7 crore, topping the Street’s forecast of ₹4,353 crore. But NII was 12.7% lower YoY compared to ₹5,228 crore in the year‑ago period.

Asset‑quality trends remained stable. The bank’s gross NPA ratio improved slightly to 3.56% from 3.60% in the previous quarter. The net NPA ratio stood at 1.04%, broadly steady on a sequential basis.

However, provisions saw a sharp rise. The bank reported provisioning expenses of ₹2,095.8 crore, up 20.2% YoY compared to ₹1,743.6 crore in the same quarter last year. The elevated provisioning weighed on bottom‑line performance even as core operations remained resilient.

Shares of IndusInd Bank are trading 0.75% higher on Friday at ₹909.2. The stock is up 7% in the last one month.