Private sector lender IndusInd Bank on January 29 reported a massive 36.2 percent year-on-year growth in standalone profit driven by lower provisions compared to year-ago period with improvement in asset quality.

Standalone profit for the December 2021 quarter came in at Rs 1,161.3 crore, higher compared to Rs 852.76 crore in corresponding period last fiscal.

Net interest income, the difference between interest earned and interest expended, grew by 11.4 percent to Rs 3,793.57 crore in Q3FY22, with 10 percent growth in advances and 19 percent increase in deposits YoY.

"Net interest margin improved to 4.10 percent (from 4.07 percent in Q2FY22) supported by continued reduction in cost of deposits. While the Covid remains a risk to watch out for, the implications of the recent wave on businesses have been limited," says Sumant Kathpalia, Managing Director & CEO at IndusInd Bank.

The provision coverage ratio was consistent at 72 percent as the end of December 2021 as well as September 2021, says the bank. "Total loan related provisions as on December 2021 were at Rs 8,486 crore (3.71 percent of loan book)."