IDFC shares under selling pressure

Shares of IDFC, a private sector infrastructure lender, came under selling pressure after the soon-to-be-bank saw a sharp erosion in quarterly profit coupled with a rise in non performing assets.

IDFC said its first quarter Net Profit fell 47 percent to 254.2 crore rupees compared with 481.7 crore rupees in the same quarter a year ago. Total Income during April-June gained 4.9 percent to 2,222 crore rupees from 2,118 crore rupees in the year ago period.

The bank's Gross Non Performing Assets rose to 1.52 percent versus 0.65 percent in the past sequential quarter. Similarly, the Net NPAs rose to 0.99 percent in the first quarter compared with 0.22 percent in the fourth quarter, the lender said in a statement to the exchanges.

IDFC fell 2.5 rupees, or 1.7 percent, to 151.80 rupees. Nearly 67 lakh Bank of IDFC changed hands by 1.15 pm on the National Stock Exchange with a 5-day average of 92 lakh shares, showing a tepid reaction to the earnings.

IDFC's market capitalisation has slipped 3.5 percent in the past one year to 24,697 crore rupees as investors dumped infrastructure lenders on the back of the rising sectoral NPA problem and a critical slowdown in the main industrial sectors of steel, power and construction.

(Image credits: Indiatimes)