About the Company:
India’s one of largest government-owned bank that possess 4,300 branches and four of these are in Hong-Kong, Dubai, Antwerp and Sydney. The bank has been playing a very proactive role in the economic growth of India and it extends credit for the requirements of different sectors of economy.
QoQ & YoY Performance:
India’s mid-level PSU bank has declared the results for the third quarter of fiscal year ending March, 2020.
- Net Interest Income: NII (difference between interest earned and interest expended) that serve as a major factor of revenue generation landed to 649,613 lakhs, marginally fell by 0.17% QoQ while on YoY basis; there is a an uptick of 8.57%.
- Net Profits: On QoQ basis, the bank has posted net profit that landed to 57,458 crores after tax while .
- Provisions and Contingencies: Bank's provisions and contingencies are fallen by 52.86% QoQ and while an uptick of 8.46% in YoY was reported.
- NPA (Gross): Gross NPA% is fallen by 2.49% QoQ and 5.11%.
- NPA (Net): Net NPA% is fallen by 3.85% YoY while a marginal incremnet of 0.14% was reported on quartely basis.
As per Lokesh Sethia, SEBI Registered Research Analyst, the bank has not posted any substantial increase in the NII numbers that sever as a major catalyst of their portfolio of products. The bank has reported an increase in their provisions and contingencies by 8.46%. Asset Quality was stable, however no decent growth trigger was witnessed while scrutinizing their portfolio. We advise you to 'Avoid' the stock in current scenario.
This is for the sole purpose to provide client(s) information of EQUITY GLOBAL RESEARCH (EG) and not to interpret as an investment advice. It is also not to consider as an offer or solicitation for the purchase and sale of any financial instrument. Any action taken based on given information contained herein, is your responsibility alone. EQUITY GLOBAL RESEARCH and its subsidiaries/employees/associates will not be liable in any manner for the consequences of such action taken by you. The due diligence we have exercised after checking the correctness and authenticity of the information contained in this recommendation. In case of any inadvertent error in the used information to make this recommendation or action taken based on information the EQUITY GLOBAL RESEARCH or any of its subsidiary or associate or employee shall not be liable in any way responsible for any loss or damage. The recommendations provided here based on either Technical Analysis, Fundamental Analysis or both. EQUITY GLOBAL RESEARCH has issued this document on information obtained from sources it believes to be reliable but not independently verified; Also, the EQUITY GLOBAL RESEARCH makes no promises, guarantee, or accepts no responsibility as to its accuracy or completeness. The opinions contained within the report based on publicly available information at the time of publication and subject to change without any intimation. Any piece of information and disclosure provided herein is in summary form and has been prepared for informational purposes. The recommendations are only valid for the day of the issued report however, trading trends, volumes might vary substantially on daily basis, and recommendations may change accordingly. The information provided herein is entirely confidential. Any misuse, distribution, modification, copying, or forwarding by any person strictly prohibited. The information provided herein do not constitute a solicitation or offer to buy or sell any security or other financial instrument. The current performance may be unaudited. Past performance does not guarantee future returns. There can be no assurance that investment will achieve any targeted rates of return, and there is no guarantee against the loss of your entire investment.