Indian Bank's Q2FY19 standalone net profit declines 66.75% yoy to Rs150.14cr : Misses Estimates

The bank’s standalone NII stood at Rs1,730.93cr, up 12.13% yoy but down 4.21% qoq.

Nov 09, 2018 10:11 IST India Infoline Research Team

Indian Bank Q2FY19

Standalone Results Q2FY19: ( cr)

Q2FY19 YoY (%)
NII 1,730.93 12.1
GNPA (%) 7.2 [4]
Provisions 1,004.34 34.9
Net Profit (adjusted) 150.14 [66.8]
***GNPA change is bps is on qoq basis
Indian Bank’s Q2FY19 NII increased 12.1% yoy to Rs1,731cr vs. Rs1,543.7cr in the corresponding period last year. However, its net profit in Q2FY19 declined 66.8% yoy to Rs150.1cr vs. Rs451.5cr yoy. The net profit was 59% below consensus estimates of Rs367cr. This is due to higher than expected slippages during the quarter (Rs1,004cr actual provision vs. Rs849cr estimated). The bank's GNPA for Q2FY19 stood at 7.2% vs. 7.2% qoq, indicating a decrease of 4bps yoy. Meanwhile, its NNPA for the quarter stood at 4.23% vs. 3.79% qoq, indicating an increase of 44bps.

Technical View:

Indian Bank is currently trading at Rs. 229.40, down by 32.7 points or 12.48% from its previous closing of Rs. 262.10 on the BSE.
The scrip opened at Rs. 262.05 and has touched a high and low of Rs. 266.35 and Rs. 226.70 respectively. So far 1,39,29,569 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 200 DMA.

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