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 second quarter of fiscal year ending March, 2020.
- Net Interest Income: NII (difference between interest earned and interest expended) that serve as a major factor for future prospects landed to 295,640 lakhs surged by 15.11% QoQ while on YoY basis; there is an uptick of 16.13%.
- Net Profits: On QoQ basis, the bank has posted loss of 631% in net profits that are landed to 43,004 lakhs after tax while on YoY basis, there is a sharp plunge of 1,545.25%.
- Provisions and Contingencies: Bank's provisions and contingencies are increased by 49.08% QoQ while 68.50% fall is witnessed in YoY.
- NPA (Gross): Gross NPA% is increased by 0.4% QoQ while 3.18% plunge is witnessed in YoY.
- NPA (Net): Net NPA ratios are plunged by 3.46% QoQ and plunged by 17.10% YoY.
As per Lokesh Sethia, SEBI Registered Research Analyst, the bank has posted decent increase in NII numbers by 16.13%. Non-interest Income of the bank has witnessed an uptick of 24.33% as the bank is advancing for delivering more banking services. provision and Contingencies have been doubled from last year that will remain a concern for the investors. However, Net NPA% has witnessed a decline. We advise you to 'Avoid' the stock in current scenario.