Daijiworld Media Network- Mumbai

Mumbai, Jul 23: Shares of private sector lender IndusInd Bank fell more than 6 per cent on Thursday despite the bank reporting a 72 per cent year-on-year rise in consolidated net profit for the April-June quarter.

The stock snapped a six-session winning streak, opening at Rs 1,049.95 on the BSE, down 1.86 per cent from the previous close of Rs 1,069.90. It later slipped to an intraday low of Rs 1,002.50, marking a decline of 6.29 per cent from the previous closing price amid higher trading volumes.

The bank reported a consolidated profit after tax of Rs 1,037.05 crore for the first quarter of the current financial year, compared to Rs 604.07 crore in the corresponding period last year and Rs 594.17 crore in the preceding quarter.

The lender also expressed confidence in stronger profitability going forward, stating that measures taken over the past year had strengthened its balance sheet.

During the quarter, net interest income (NII) rose marginally by 1 per cent to Rs 4,685 crore, despite a 2 per cent decline in advances. Net interest margin (NIM) stood at 3.35 per cent, compared with 3.46 per cent, excluding a one-time income tax refund of Rs 284 crore.

Other income declined 17 per cent year-on-year to Rs 1,787 crore.

The bank's earnings were supported by a 21 per cent reduction in provisions and contingencies, which fell to Rs 1,384 crore during the quarter.

According to BSE data, IndusInd Bank shares have gained 2.84 per cent over the past five years. However, the stock has declined 27.76 per cent over three years and 28.01 per cent over two years.

On a year-to-date basis, the stock has advanced 14.20 per cent, outperforming the benchmark index, which has declined 10.01 per cent during the same period.

The stock's 14-day Relative Strength Index (RSI) stood at 73.36, indicating that it is currently in the overbought zone, as an RSI reading above 70 is generally considered overbought.