About the Company
One of the fastest expanding private sector bank that offers specialized services in six business areas namely: Commercial Banking, Corporate and Institutional Banking, Development Banking, Agri-Business Banking, Treasury and Fnancial Market Operations. The bank has earned recognition as KPMG Study; Business World’s ‘Fastest Growing Small Bank’ consistently for five years (2013,2014, 2015, 2016, 2017).
QoQ & YoY Performance:
India’s midcap private sector lender has declared the results for the second quarter of fiscal year ending March 2020.
- Net Interest Income: NII (difference between interest earned and interest expendid) that serve as a major factor for future prospects have landed to 93,299 lakhs, are increased 6.28% QoQ while on YoY basis, there is an increase of 57.20%. QoQ growth in interest expended is grown more than interest earned.
- Net Profits: The bank has posted net profits of 5,342 lakhs this quarter. On QoQ basis, net profits have fallen 79.87% while on a YoY basis, there is a similar plunge of 74.87%.
- Provisions and Contingencies: Bank's provisions and contingencies have been surged sharply by 150.16% QoQ and 281.8% in YoY.
- NPA (Gross): Gross NPA% has been surged sharply this quarter by 88.41% QoQ and 85.71% YoY, which will keep the investors to form any long position in the stock.
- NPA (Net): Net NPA ratios are surged by 140% QoQ and 110.81% YoY.
As per Lokesh Sethia, SEBI Registered Research Analyst, the bank has been through various doldrums led by major exposure in Cafe Coffee Day alongwith the issue of insider trading. The recent surge in Provisions and Contingencies are not expected to result in any promoising returns in upcoming sessions. No doubt, the bank has disclosed strong growth in NII numbers but weaken asset quality will continue to impact the prices. We recommend to 'Avoid' this stock in current scenario.