Rakesh Tarway, head of research, Reliance Securities belives the slippage ratio declining to 1.85% in Q2FY18 from 5.38% in Q1FY18 pushed the stock higher. He advises that investors stay put in the stock for now.
The bank’s gross non-performing assets (NPAs) during the quarter under review declined to 9.83%, as against 9.97% in Q1FY18. Net NPAs, too, fell to 5.43% of the net advances at the end of second quarter this fiscal, from 5.97% in the previous quarter.
Slippage ratio declined to 1.85% in Q2FY18 from 5.38% in Q1FY18, significantly improved across all segments. The bank said the special recovery teams formed at all critical processing centres and requisitioned services of retired bank officials to boost recoveries.
Net interest income (interest income minus interest expenses) grew 5.6% at Rs 18,586 crore in Q2FY18 against Rs 17,606 crore in previous quarter. The bank reported net profit of Rs 1,582 crore against Rs 2,006 crore in Q1FY18.
The trading volume in the counter more than doubled, with a combined 51.46 million shares changing hands on the BSE and NSE till 01:42 PM.
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