ING Vysya Bank tumbles after poor Q1 numbers

ING Vysya Bank lost 5.46% to Rs 585.55 at 9:16 IST on BSE after net profit declined 18.11% to Rs 143.40 crore on 4.77% growth in total income to Rs 1627.28 crore in Q1 June 2014 over Q1 June 2013.

The Q1 result was announced after market hours on Tuesday, 22 July 2014.

Meanwhile, the S&P BSE Sensex was up 106.25 points or 0.41% at 26,132.05.

On BSE, so far 3,158 shares were traded in the counter as against average daily volume of 34,000 shares in the past two weeks.

The stock hit a high of Rs 590 and a low of Rs 576 so far during the day.

ING Vysya Bank's provisions and contingencies jumped 47.99% to Rs 100.80 crore in Q1 June 2014 over Q1 June 2013.

The bank's ratio of gross non-performing assets (NPA) to gross advances stood at 2.39% as on 30 June 2014 as against 1.77% as on 31 March 2014 and 1.75% as on 30 June 2013. The ratio of net NPA to net advances stood at 0.87% as on 30 June 2014 as against 0.28% as on 31 March 2014 and 0.19% as on 30 June 2013.

The bank's Capital Adequacy Ratio (CAR) stood at 15.19% as on 30 June 2014 as against 16.76% as on 31 March 2014 and 12.59% as on 30 June 2013.

ING Vysya Bank's board of directors at its meeting held on Tuesday, 22 July 2014, proposed to seek approval of the shareholders of the bank through postal ballot to borrow such amount that the total amount of borrowings of the bank outstanding at any time shall not exceed Rs 20000 crore not withstanding that the money to be borrowed together with the moneys already borrowed by the bank (apart from temporary loans obtained from the bank's bankers in the ordinary course of business), will exceed the aggregate of the paid-up capital of the bank and its free reserves as against the existing authorization to borrow upto four times of the aggregate of the paid-up capital and free reserves. The bank also proposes to augment its capital either through a Tier I and/or Tier II debt issuance (which qualifies under Basel III requirement) or a combination of both in India rupees or equivalent foreign currency not exceeding Rs 700 crore through private placement of securities.

ING Vysya Bank is a leading private sector bank with retail, private and wholesale banking platforms.

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