The bank’s share price fell 25% to an intraday low of Rs 403.25 compared to the day’s high of Rs 535 on BSE in response to the numbers. The price recovered slightly to settle 16.2% lower at Rs 418.55 from the previous closing price of Rs 499.65.On Wednesday, the bank was also rocked by a whistleblower who took to social media to raise concerns over alleged misclassification of farm loans and evergreening of gold loans, bias in performance evaluation and unethical practices of managing director Pralay Mondal and other senior leaders.
“Currently, we are not aware of the matters mentioned and it was not verifiable at this time. So, it will be difficult for me or the bank to respond in any way at this point,” CBS Bank MD Pralay Mondal said.
On the financial figures, Mondal said about 60% of the slippages come from SME accounts. “We are not very concerned about these derailments. We expect this to be reversed within one or two quarters,” he said. The balance of 40% of slippages comes from retail account holders and is in line with the quarterly trend, Mondal said.
Provisions were higher at Rs 87 crore compared to Rs 17 crore, while pre-provision operating profit was up 32% at Rs 292 crore. The bank’s net interest income rose 21% year-on-year to Rs 453 crore. Net interest margin for the quarter was 3.86%, compared to 3.81% in the previous quarter and 4.11% in the same period a year ago.
Net advances rose 28% year-on-year to Rs 36,677 crore, supported by a 46% rise in gold loans and 40% in wholesale.
Total deposits rose 21% to Rs 40,460 crore.
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