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The Q3FY16 performance of the Bank, where profits took a hit and asset quality also fell left

the stock price reeling in the red. The stock price hit a n
52-week low at Rs.47.45 post the numbers.
This Kerala based Bank obviously had a tough quarter its net profit dipped 38% (YoY) at Rs.163 crore and this was mainly on account of muted growth
incomes. Net Interest Income rose by just 3% (YoY) at Rs.605 crore while non interest income fell by 17% to Rs.183 crore. Operating profit showed a 18% drop at Rs.3
crore. It did not help the bottomline that provisions rose 14% (QoQ) at Rs.75 crore. The tax outgo was down 34% (YoY) and that probably help shore the profit fall.
In terms of asset quality, Gross NPA was at 3.15% v/s 2.9% in Q2 and 2.19% in previous Q3. Net NPA also rose from 0.69% in previous Q3 and 1.33% in preceding quar
to 1.66% in current Q3.
Total slippages during the quarter were at 571 crore coming from two metal accounts, one each from textile and jute sector. Its sold stressed assets for Rs.200 crore to as
restructuring company.

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