Mumbai, Jan 31 (IANS): IndusInd Bank on Friday reported a net profit of Rs 1,402 crore for the third quarter of the financial year 2024-25 (Q3 FY25), marking a 39 per cent decline compared to Rs 2,301 crore in the same quarter last year (Q3 FY24).

The bank's financial performance was impacted by higher provisions and a slight decline in its core income.

The net interest income (NII), which represents the difference between interest earned and interest paid, stood at Rs 5,228 crore in Q3 FY25, a marginal dip of 1.2 per cent from Rs 5,295 crore in the corresponding quarter of the previous year.

The bank’s net interest margin (NIM), a key measure of profitability, dropped to 3.93 per cent from 4.29 per cent a year ago and also declined from 4.08 per cent in the previous quarter.

IndusInd Bank’s asset quality weakened, with its gross non-performing assets (GNPA) rising to Rs 8,375 crore, or 2.25 per cent of total loans, as of December 31, 2024.

This was higher than the 1.92 per cent GNPA recorded in the same period last year.

The net NPA also saw a slight increase to 0.68 per cent from 0.64 per cent in the previous quarter.

The bank maintained a Provision Coverage Ratio of 70 per cent and set aside Rs 1,744 crore as provisions and contingencies in the quarter, up from Rs 969 crore in the same period last year.

The bank's total deposits grew by 11 per cent year-on-year to Rs 4,09,438 crore, while savings deposits saw a 6 per cent increase.

IndusInd Bank also expanded its branch network, operating 3,063 branches and 2,993 ATMs as of December 31, 2024. The bank's total client base reached 42 million.

The bank’s stock saw a 4 per cent rise, closing at Rs 995.20.