IOB plunges on dismal Q2 numbers

The gross NPA increased to 3.87% from 3.07%, while Net NPA almost doubled at 2.25% from 1.21% on y-o-y basis.

Indian Overseas Bank (IOB) has plunged over 7% at Rs 74.25 after reporting lower than expected 24% year-on-year (yoy) fall in net profit at Rs 158 crore  for the second quarter ended September 2012 due to lower interest and other income. Analyst on an average had expected profit of Rs 320 crore from state-owned bank.

Net interest income (NII) has declined by 2% at Rs 1,246 crore on y-o-y basis, while other income down to Rs 411 crore from Rs 427 crore during the recently concluded quarter.

The bank’s gross non performing assets (NPA) have increased to 3.87% from 3.07%, while Net NPA almost doubled at 2.25% from 1.21% on y-o-y basis.

The stock opened at Rs 80 and hit a low of Rs 73.85 on the BSE. The counter have seen over two-fold jump in trading volumes with a combined 2.57 million shares changing hands so far on both the exchanges