Corporation Bank dips on worsening assets quality
The stock was down 6% at Rs 283 on the Bombay Stock Exchange.
Corporation Bank has dipped 6% to Rs 283 after reporting a sharp 96% year-on-year (yoy) decline in net profit at Rs 15.48 crore for the second quarter ended September 30, 2013 (Q2) due to higher provisioning towards non-performing assets (NPAs). The state-owned bank had profit of Rs 406 crore in the year-ago period.
The bank’s net interest income (NII) however, grew 13% yoy at Rs 910 crore, Corporation Bank said in a statement.
Asset quality pressures for the bank intensified during the quarter, as it reported annualized slippage rate of 4.0%, which resulted in around 40% sequential increase in Gross and Net NPA levels, said analyst at Angel Broking in a note.
During the quarter under review, the bank’s gross bad loan ratio rose to 3.17% from 1.97%, while net NPA ratio increased to 2.20% from 1.38% in the corresponding quarter of previous fiscal.
The stock opened at Rs 285 and hit a low of Rs 279 on BSE. A combined around 75,000 shares have changed hands on the counter so far on BSE and NSE.
The bank’s net interest income (NII) however, grew 13% yoy at Rs 910 crore, Corporation Bank said in a statement.
Asset quality pressures for the bank intensified during the quarter, as it reported annualized slippage rate of 4.0%, which resulted in around 40% sequential increase in Gross and Net NPA levels, said analyst at Angel Broking in a note.
During the quarter under review, the bank’s gross bad loan ratio rose to 3.17% from 1.97%, while net NPA ratio increased to 2.20% from 1.38% in the corresponding quarter of previous fiscal.
The stock opened at Rs 285 and hit a low of Rs 279 on BSE. A combined around 75,000 shares have changed hands on the counter so far on BSE and NSE.
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First Published: Nov 12 2013 | 9:38 AM IST