The net profit for the previous quarter was Rs. 160 crore was less.
Reacting to this figure, the bank’s share price on BSE fell 25% to Rs. 403.25 to an intra-day low of Rs. 535 was the high of the day. The prices improved slightly and the previous Rs. 499.65 to close by 16.2 percent to Rs. was settled at 418.55.
On Wednesday, the bank was also rocked by a whistleblower raising concerns over alleged misclassification of agriculture loans and bias in performance appraisal of gold loans, as well as unethical practices by managing director Pralay Mandal and other senior leaders.
“Currently we are not aware of the matters mentioned nor was it verifiable at this time. So it will be difficult for me or the bank to respond in any way at this time,” CBS Bank MD Pralay Mondal said.
On financial figures, Mandal said about 60% of the slippage is from the SME account. “We are not too worried about this slippage. We expect this to reverse in a quarter or two,” he said. The remaining 40% of the slippage is from retail account holders and is in line with the quarterly trend, Mondal said.
Provisions Rs. 17 crore as compared to Rs. 87 crore was high while pre-provision operating profit was Rs. 292 crore was 32%.
The bank’s net interest income grew by 21% year-on-year to Rs. 453 crores. Net interest margin for the quarter was 3.86% compared to 3.81% in the previous quarter and 4.11% in the year-ago period.
Its net advances grew by 28% year-on-year to Rs. 36,677 crore, supported by 46% growth in gold loans and 40% growth in wholesale business.
Total deposits increased by 21% to Rs. 40,460 crores.
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