IDFC Bank slips on weak Q4 earnings, asset quality concerns

Q4 net declined 32% to Rs 165 crore q-o-q while Gross NPAs rose 6.2% compared with 3.09% in Dec 2015 quarter

Shares of IDFC Bank were down 5% at Rs 50 after the bank reported weak earnings for the fourth quarter ended March 2016 and increase in non-performing assets.

The bank reported 32% drop in net profit at Rs 165 crore for the fourth quarter ended March 2016 compared to Rs 242.2 crore in the previous quarter.

Gross non-performing assets increased to 6.2% at Rs 3,058 crore at end of March 2016, up from Rs 1,462 crore (3.09%) in the previous quarter ended December 2015.

Net non-performing assets were also higher by 2.39% at Rs 1,139 crore compared with Rs 453 crore (0.98%) at end of the December 2015 quarter.

The stock opened at Rs 49.85 and touched a low of Rs 49.65 on the BSE. At 10:30am, over 3.4 million shares were traded on both the stock exchanges.