The net profit was lower than the preceding quarter’s Rs 160 crore.
The bank’s share price nosedived 25% to an intra-day low of Rs 403.25 from the day’s high of Rs 535 on BSE reacting to the numbers. The price recovered a bit and settled at 16.2% lower at Rs 418.55 from the previous close of Rs 499.65.
On Wednesday, the bank was also rocked by a whistleblower raising concerns in the social media over alleged misclassification of agriloans and evergreening of gold loans, biases in performance evaluation as well as unethical practices by managing director Pralay Mondal and other senior leaders.
“Currently we are not aware of things mentioned and neither was it verifiable at this point of time. So it will be difficult for me or the bank to respond in any manner at this point,” CBS Bank MD Pralay Mondal said.
On the financial numbers, Mondal said that about 60% of the slippages are from SME accounts. “We are not very worried about these slippages. We expect this to get reversed in one or two quarters,” he said. The balance 40% of the slippages are from retail account holders and in line with the quarterly trend, Mondal said.
Provisions were higher at Rs 87 crore as compared with Rs 17 crore while pre-provision operating profit stood 32% at Rs 292 crore.The bank’s net interest income was up by 21% year-on-year at Rs 453 crore. Net interest margin for the quarter stood at 3.86% as compared with 3.81% in the preceding quarter and 4.11% in the year ago-period.
Its net advances grew 28% year-on-year to Rs 36,677 crore, supported by 46% rise in gold loans and 40% rise in wholesale business.
Total Deposits grew by 21% to Rs 40,460 crore.
