The financial performance of the bank has been under pressure in the current fiscal. During the second quarter ended 30th Sept 2009, bank’s net interest income (NII) was down 32.62% from Rs 104.41 crore to Rs 70.35 crore. Its net NPA was up 4.5% to Rs 31.77 crore. Net profit was down 48.6% from Rs 34.63 crore to Rs 17.8 crore.
For HIFY10, NII was at Rs.141.12 crore v/s Rs.185.73 crore, a fall of 24%. Net profit was down 47% at Rs.34.87 crore. Though the bank has remained steady in its revenue income from treasury and corporate earnings, it is the retail segment which has taken the hit and ultimately pulled down the overall margins.
And to overcome this slowdown, the bank is now extremely aggressive in the home loans section, especially in the category of Rs.30 lakhs, where it cut its home loan rates to 7.5%.
The bank plans to raise Rs.250 crore before the end of this fiscal and it plans to take the QIP route.
The stock had hit a 52-week high of Rs 98 on 21 October 2009 and a 52-week low of Rs 30.95 on 12 March 2009. The current price of Rs.74 discounts the company's Q2 September 2009 annualised EPS of Rs 4.41, by a PE multiple of 16.78 times.
In light of the QIP issue any time soon, the counter is expected to see some action in the coming days. The bank remains strong and the second half of the current fiscal should see a marked improvement in its performance.
Source: Internet (By S P Tulsian)
For HIFY10, NII was at Rs.141.12 crore v/s Rs.185.73 crore, a fall of 24%. Net profit was down 47% at Rs.34.87 crore. Though the bank has remained steady in its revenue income from treasury and corporate earnings, it is the retail segment which has taken the hit and ultimately pulled down the overall margins.
And to overcome this slowdown, the bank is now extremely aggressive in the home loans section, especially in the category of Rs.30 lakhs, where it cut its home loan rates to 7.5%.
The bank plans to raise Rs.250 crore before the end of this fiscal and it plans to take the QIP route.
The stock had hit a 52-week high of Rs 98 on 21 October 2009 and a 52-week low of Rs 30.95 on 12 March 2009. The current price of Rs.74 discounts the company's Q2 September 2009 annualised EPS of Rs 4.41, by a PE multiple of 16.78 times.
In light of the QIP issue any time soon, the counter is expected to see some action in the coming days. The bank remains strong and the second half of the current fiscal should see a marked improvement in its performance.
Source: Internet (By S P Tulsian)
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