You are here: Home » Markets » News
Business Standard

Karur Vysya Bank hits 20% lower circuit on weak Q3 results

Gross NPAs spiked to 8.49 per cent of gross advances as at December-end 2018 from 5.94 per cent by December 2017.

SI Reporter  |  New Delhi 

stock market

Shares of private sector lender on Thursday tumbled 20 per cent to hit its lower circuit limit of Rs 63.40 apiece on BSE. The company on Tuesday posted a 70 per cent decline in its net profit at Rs 21.20 crore for October-December quarter of FY19 as bad loans spiked.

The private sector lender had clocked a profit of Rs 71.49 crore in the year-ago period.

Gross NPAs spiked to 8.49 per cent of gross advances as at December-end 2018 from 5.94 per cent by December 2017. Net NPAs too rose to 4.99 per cent (Rs 2,295.60 crore) from 3.88 per cent (Rs 1,698.92 crore).

Provision coverage ratio was at 56.09 per cent as at December-end 2018, said.

In its concall, the bank said corporate gross slippages formed Rs 484 crore, which comprises the entire IL&FS exposure (two entities) worth Rs 314 crore; one watchlist asset of Rs 130 crore and one restructured asset worth Rs 40 crore. Provisioning on IL&FS slippage has been done at 50 per cent, it said.

For the next five quarters, the bank has guided total gross slippages of Rs 1,850 crore and net slippages of Rs 1,100 crore. It has given guidance of Rs 750 crore for total recovery and upgradation .

Nirmal Bang Securities said the outlook of the bank is negative in the near-term and elevated slippages and credit costs will impact FY20 profitability.

At 10:00 am, shares of the bank were trading 17.35 per cent lower at 65.50 apiece on BSE. In comparison, the S&P BSE was trading 94 points lower at 35,940 levels.

First Published: Thu, February 14 2019. 10:03 IST
RECOMMENDED FOR YOU