South Indian Bank is the top loser on the BSE, going down 8.5% to Rs.14.25 and it remains in the red.
The market is disappointed with the Bank’s performance for Q3FY19. It posted a 27% (YoY) decline in net profit at Rs.84 crore. However, the operating profit is marginally better than last year at Rs.332 crore v/s Rs.330 crore (YoY).
The Bank has said that it has reckoned IL&FS exposure of Rs.400 crore as NPA during the current quarter with a 15% provision which dragged down the PAT. The Bank said that with this, it has finally come out of the stress in its large corporate portfolio which had been a major challenge during the last four years.
In terms of asset quality, Gross NPA rose to 4.88% v/s 3.40% (QoQ) and Net NPA also increased to 3.54% from 2.35%.