Indian Bank shares plunge as Q4 net falls 21%, NPAs rise
In an interview to NDTV Profit, Saumitra Chaudhuri, Member of Planning Commission, said that the rupee’s fall is a combination of various factors like fiscal deficit and weak capital flows. “The RBI is trying to stabilise the rupee,” he added.
Shares of public sector lender Indian Bank plunged after March quarter earnings disappointed the Street.
The lender's core income or the net interest income (NII) declined 2.5 per cent at Rs 1,082.6 crore in the fourth quarter against Rs 1,111 crore in the corresponding quarter last year. Profit after tax fell over 21 per cent at Rs 345 crore against Rs 439 crore year-on-year.
An NDTV Profit poll had seen NII at Rs 1,197 crore and PAT at Rs 483 crore.
Besides operational weakness, the provisions for bad loans soared to Rs 562 crore against Rs 127 crore.
Gross non-performing assets (NPAs), as a percentage of advances, jumped to 2.03 per cent against 0.98 over the last year. Net NPAs, as a percentage of advances, rose at 1.33 per cent against 0.53 per cent.
Shares of the company traded 8 per cent lower at Rs 180.80 on the BSE at 3 pm, while the Sensex was down 0.43 per cent at 16,350.
"This has been the problem with several other PSU banks like Punjab National Bank and Central Bank. I will not be surprised if the stock tests the December lows of 170," Shardul Kulkarni of Angel Broking told NDTV Profit today.