Unaudited Financial Results for the quarter ended June 30, 2016

Unaudited financial results

Notes:

1There has been no material change in the accounting policies adopted during the quarter ended June 30, 2016 as compared to those followed for the year ended March 31, 2016.
2The working results for the quarter ended June 30, 2016 have been arrived at after considering provision for standard assets, including requirements for exposures to entities with Unhedged Foreign Currency Exposure, non-performing assets (NPAs), depreciation on investments, income-tax and other usual and necessary provisions.
3The above financial results for the quarter ended June 30, 2016 were subjected to a “Limited Review” by the Statutory Auditors of the Bank. A clean report has been issued by them thereon. These financial results were reviewed by the Audit Committee and subsequently have been taken on record and approved by the Board of Directors at its meeting held on July 11, 2016.
4RBI Master Circular DBR.No.BP.BC.1/21.06.201/2015-16 dated July 01, 2015, as amended, on Basel III Capital Regulations contain guidelines on certain Pillar 3 and leverage ratio disclosure requirements that are to be made along with the publication of financial results. Accordingly, such applicable disclosures have been placed on the website of the Bank which can be accessed at the following link:   https://www.indusind.com/content/home/important-links/regulatory-disclosures-section.html
5These disclosures have not been subjected to the Limited Review. The Capital Adequacy Ratio is computed on the basis of RBI guidelines applicable on the relevant reporting dates and the ratio for the corresponding previous period is not adjusted to consider the impact of subsequent changes if any, in the guidelines.
6The business operations of the Bank are largely concentrated in India and for the purpose of Segment Reporting, the Bank is considered to operate only in domestic segment. On obtaining RBI approval, the Bank has commenced during the quarter ended June 30, 2016, its operation in International Finance Service Centre (IFSC) Banking Unit in Gujarat International Finance Tec City (GIFT).  The business conducted from the same is considered as a part of Indian operations.
7Pursuant to RBI circular DBR.BP.BC.No.31/21.04.018/2015-16 dated July 16, 2015, the Bank has, with effect from September 30, 2015, included its deposits placed with NABARD, SIDBI and NHB on account of shortfall in lending to priority sector under ‘Other Assets’. Hitherto these were included under ‘Investments’ and interest income thereon was included under ‘Interest Earned – Income on Investments’. On account of this regrouping, interest income on deposits placed with NABARD, SIDBI and NHB is included under ‘Interest Earned – Others’. Figures for the previous periods have been regrouped / reclassified to conform to current period’s classification. The above change in classification has no impact on the profit of the Bank for the quarter ended June 30 , 2016 or the previous periods.
8In terms of RBI circular DBOD.BP.BC.No.98/21.04.132/2013-14 dated February 26, 2014, in respect of assets sold to SC/RCs during the quarter ended March 31, 2015 , the shortfall arrived at by deducting sale consideration and provisions held as on the date of sale from the outstanding amount, is being amortized over two years. Accordingly, the Bank has charged to the Profit and Loss account an amount of Rs. 32.09 crores during the current quarter.
9Effective July 01, 2015, the Bank has regrouped sourcing costs relating to small ticket retail loan origination and bank charges incurred by the Consumer Finance Division under “Operating Expenses” which were hitherto netted off from “Other income” in order to be aligned with practice followed by the industry. Figures for the previous periods have been regrouped / reclassified accordingly. This change in classification has no impact on the profit of the Bank for the quarter ended June 30, 2016 or the previous periods.
10During the quarter ended June 30, 2016, the Bank allotted 8,79,843 shares pursuant to the exercise of stock options by certain employees.
11The position of investor complaints is as under:
No. of complaints pending resolution at the beginning of the quarter 0; received during the quarter 32; resolved during the quarter 32; closing position 0.
12Previous period / year figures have been regrouped / reclassified, where necessary to conform to current period / year classification.

Mumbai
July 11, 2016

Romesh Sobti
Managing Director

Segment reporting

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