Indian Bank shares dive 12.5 pc post disappointing Q2 earnings

Shares of Indian Bank Friday slumped 12.5 per cent after the company reported a 66.7 per cent drop in its net profit for the second quarter ended September.

The stock tumbled 12.48 per cent to settle at Rs 229.40 on BSE. Intra-day, it dived 13.50 per cent to Rs 226.70.

At NSE, shares of the company plunged 12.28 per cent to close at Rs 229.45.

In terms of equity volume, 8.74 lakh shares of the company were traded on BSE and over one crore shares changed hands at NSE during the day.

State-owned Indian Bank Friday reported a 66.7 per cent drop in its net profit at Rs 150.1 crore for the second quarter ended September on account of increase in bad loans.

The bank's net profit in the corresponding July-September quarter of 2017-18 was at Rs 451.5 crore.

However, total income of the bank increased to Rs 5,129.16 crore for the September quarter this year, from Rs 4,874.16 crore in the same period of the previous fiscal, the bank said in a regulatory filing.

Asset quality deteriorated, with gross non-performing assets (NPAs) rising to 7.16 per cent of the gross advances as on end-September 2018, as against 6.67 per cent by September 2017.