The bank disappointed with its Q2FY13 numbers. The bank reduced its provisioning by 23% (YoY) at Rs.421 crore but this was not due to asset quality improving but because earnings took a hit, making it very difficult for the bank to increase the provisioning. Gross NPA was up from 1.98% to 2.58% (QoQ) and Net NPA was also up 2.12% from 1.66%. Clearly, provisioning was not enough. So not only is the asset quality hit but its net profit for the quarter was down 22% (YoY) at Rs.661. NII was down less than one percent  and NIM slipped from 2.51% to 2.35%.

The bank has blamed the poor numbers on higher interest outgo for bulk deposits, slower credit offtake, fresh slippages and restructuring of large corporate accounts. It restructured accounts to the tune of Rs.600 crore. CAR was at 13.07% v/s 13.22% (QoQ). Return on assets, YoY, fell from 1.01% to 0.71%. Nothing encouraging in these numbers and the stock price could see further fall in the days to come.