Corp Bank top loser

This stock remains the biggest loser on the BSE since morning, currently down almost 5% at Rs.286.75, with an intra day low at Rs.280.65, with a spurt in volumes by almost 2.5 times.

The stock price has been hammered down on the back of its very poor numbers for Q4FY14. The bank reported a sharp 88% (YoY) drop in its net profit for the quarter at Rs.42 crore and this was mainly on the back of increase in bad loans (NPAs) and consequently higher provisioning. For Q4, the Bank made a provisioning of Rs.8254 crore, which is 79% higher on YoY provisioning. In Q3, the Bank had provisioned Rs.916 crore. Asset quality has also deteriorated, with Net NPA coming in at 2.32% v/s 2.15% (QoQ) and Gross NPA was at 3.42% v/s 3.08% in Q3. The market is disappointed because it had felt that things could have got a little better in Q4, given the bad times in Q3 and the high provisioning it had made in Q3. Thus to see the same thing again in Q4, traders on the counter have got jittery.