ING Vysya Bank drops after muted growth in Q3 earnings

ING Vysya Bank lost 1.82% to Rs 518.10 at 11:13 IST on BSE after net profit rose 3.08% to Rs 167.34 crore on 4.37% growth in total income to Rs 1487.85 crore in Q3 December 2013 over Q3 December 2012.

The Q3 result was announced after market hours on Friday, 31 January 2014.

Meanwhile, the S&P BSE Sensex was down 93.12 points or 0.45% at 20,420.73.

On BSE, so far 2,116 shares were traded in the counter as against average daily volume of 10,789 shares in the past one quarter.

The stock hit a high of Rs 528.25 and a low of Rs 510.50 so far during the day. The stock had hit a 52-week low of Rs 405.50 on 28 August 2013. The stock had hit a record high of Rs 667 on 5 June 2013.

The stock had underperformed the market over the past one month till 31 January 2014, sliding 13.73% compared with the Sensex's 3.1% fall. The scrip had also underperformed the market in past one quarter, declining 10.38% as against Sensex's 3.07% fall.

The mid-cap company has equity capital of Rs 188.16 crore. Face value per share is Rs 10.

The bank's provisions and contingencies declined 6.46% to Rs 23.01 crore in Q3 December 2013 over Q3 December 2012.

ING Vysya Bank's ratio of gross non-performing assets (NPAs) to gross advances declined to 1.68% as on 31 December 2013, from 1.72% as on 30 September 2013 and 1.77% as on 31 December 2012. The ratio of net NPAs to net advances stood at 0.21% as on 31 December 2013 as against 0.19% as on 30 September 2012 and 0.05% as on 31 December 2012.

The bank's Capital Adequacy Ratio (CAR) stood at 16.93% as on 31 December 2013 as against 16.75% as on 30 September 2013 and 12.47% as on 31 December 2012.

The Reserve Bank of India (RBI) has vide its circular dated 20 December 2013 advised all banks to create, as a matter of prudence, a Deferred Tax Liability (DTL) on Special Reserve created under Section 36(1)(viii) of Income Tax Act, 1961. Accordingly, the tax expense for the quarter and nine months ended 31 December 2013 includes proportionate nine month deferred tax charge of Rs 4.08 crore on Special Reserve at that date. Further, on the Special Reserve balance of Rs 74.70 crore at 31 March 2013, the bank created a DTL of Rs 25.39 crore by debiting opening Revenue Reserves, ING Vysya Bank said.

ING Vysya Bank is a private sector bank with retail, private and wholesale banking platforms that serve over two million customers.

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