Monday, October 29, 2012

IOB Q2 net falls 24% to Rs 158 cr, stock plunges 7%



Public sector lender Indian Overseas Bank  's (IOB) net profit fell by 23.7% year-on-year to Rs 158.4 crore in the second quarter of financial year 2012-13 due to increase in non-performing assets (NPAs).

Net interest income declined 1.6% to Rs 1,246.2 crore from Rs 1,266.4 crore during the same period.

Numbers were far lower than expected. Kotak Institutional Equities expected net profit of Rs 339 crore and net interest income of Rs 1,399 crore for the quarter.

Gross NPAs rose by 90 basis points quarter-on-quarter to 3.87 percent while net NPAs increased 77 basis points QoQ to 2.25 percent during the quarter.

Gross NPAs shot up 34.5% QoQ to Rs 5,929.6 crore and net NPAs jumped 57% to Rs 3,378 crore in the July-September quarter.

At 14:59 hours IST, the share plunged nearly 7 percent to Rs 74.70 amid large volumes.


Source: www.moneycontrol.com

Thanks,
Gaurav Agarwal 
Head Dealer 
DENIP Consultants Pvt Ltd

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