Shares of IDBI Bank are slipping despite healthy quarterly profits. Know why

Advertisement
Shares of IDBI Bank are slipping despite healthy quarterly profits. Know why
Advertisement
IDBI Bank, a government controlled lender, reported a sharp rise in quarterly profit on the back of a modest rise in lending but the shares skidded on profit booking as the numbers failed to enthuse the markets.

IDBI said its first quarter profit rose 27 percent to 135.2 crore rupees versus 106.2 crore rupees in the same period a year ago. However, profit fell substantially when compared to the fourth quarter PAT of 546 crores. Net Interest Income during April-June gained 20 percent to 1,494 crore rupees compared with 1,205 crore rupees in the year ago quarter.

IDBI's non-performing asset portfolio was a cause for worry. Its Gross NPAs rose to 6.64 percent in the first quarter versus 5.88 percent sequentially and its Net NPAs inched up to 3.18 percent from 2.88 percent sequentially.

IDBI fell a 0.8 rupee, or 1.2 percent, to 64.15 rupees on the National Stock Exchange where 31.3 lakh shares changed hands by 2:15 pm versus its 5-day average of 28 lakh shares.

IDBI's market capitalisation rose 24 percent to 10,289 crore rupees in the past one year.
Advertisement


Image credit: Indiatimes