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IndusInd Bank share rises 6% ahead of Q2 earnings, top gainer on Sensex

IndusInd Bank share price rose 6% to  Rs 1315.65 at 2:35 pm compared to the previous close of Rs 1241.80 on BSE.

twitter-logo BusinessToday.In        Last Updated: October 9, 2019  | 15:14 IST
IndusInd Bank share rises 6% ahead of Q2 earnings, top gainer on Sensex
IndusInd Bank share has been on weak wicket since September 26 amid persistent concerns over exposure to stressed sectors. It has lost 15% since then when it closed at Rs 1,548 on BSE.

IndusInd Bank share price was trading higher ahead of the lender's Q2 earnings set to be announced tomorrow. The private sector lender is also expected to announce details about the succession plan since MD and CEO Ramesh Sobti will retire in March 2020.  Sumant Kathpalia, head consumer banking at the lender is likely to succeed Sobti.

IndusInd Bank share price rose 6.15% to  Rs 1318.15 at 2:35 pm compared to the previous close of Rs 1241.80 on BSE.  The lender was top gainer on Sensex. On Nifty too, the stock rose over 6% to Rs 1319. 

IndusInd Bank share has been on weak wicket since September 26 amid persistent concerns over exposure to stressed sectors. It has lost 15% since then when it closed at Rs 1,548 on BSE.     

Reports emerged at the end of September that IndusInd Bank had exposure to Indiabulls Housing Finance which was issued a notice by Delhi High Court (HC) in response to a plea for probe into financial irregularities.

Delhi HC has also sought a response from Centre and the RBI on the plea seeking a probe by a Special Investigation Team (SIT) into the alleged illegalities, siphoning of funds and violations committed by the promoters of Indiabulls Housing Finance Ltd (IBHFL).

Investors continued to press sell button even after the Mumbai-based bank issued a clarification that its exposure to a housing finance company (HFC) was fully collateralised with no overdues.

In Q1 of the current fiscal, the lender reported a 38.3 per cent rise in its standalone net profit at Rs 1,432.50 crore for the June quarter of this fiscal. The bank had posted a net profit of Rs 1,035.72 crore in the corresponding period of the preceding fiscal ended March 2019.

Total income grew to Rs 8,624.62 crore during the June quarter of 2019-20 under review, as against Rs 6,369.75 crore in the same period of 2018-19, IndusInd Bank said.

On the asset front, the lender witnessed an uptick with the gross non-performing assets (NPAs) rising to 2.15 per cent of the gross advances at the end of June 2019, as against 1.15 per cent by end of June 2018.

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