Karur Vysya Bank’s shares fell around 16 percent after seeing a positive start as investors turned wary of the guidance offered by the management.
It touched an intraday high of Rs 70 and an intraday low of Rs 63.40, which is the stock's 52-week low.
Investors could have reacted to its results as well as management commentary, too.
According to a CNBC-TV18 report, the bank guided for Rs 1,000 crore of SME slippages over five quarters. This, it added, translates to Rs 200 crore worth slippages every quarter, which is higher than Rs 158 crore of Q3 SME slippage.
The private sector lender's third quarter (October-December) net profit fell sharply by 70.3 percent year-on-year to Rs 21.2 crore dented by higher provisions and tepid NII growth.
Profit in quarter ended December 2017 stood at Rs 71.5 crore.
Net interest income, the difference between interest earned and interest expended, increased 3.4 percent to Rs 580.8 crore compared to year-ago.
Asset quality weakened further during December quarter. Gross non-performing assets (NPA) as a percentage of total advances were higher at 8.49 percent against 7.70 percent in previous quarter.
Net NPA also turned higher at 4.99 percent in Q3 against 4.41 percent in September quarter.
At 12:32 hrs, Karur Vysya Bank was quoting at Rs 66.75, down Rs 12.50, or 15.77 percent.
Source:https://www.moneycontrol.com/news/business/markets/why-are-karur-vysya-banks-shares-down-over-16-in-todays-trade-3536271.htmlIf you need more information about the Stock Market:
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