Rakesh Jhunjhunwala increased stake in Karur Vysya Bank to 4.22 percent from 3.66 percent earlier.
Big bull Rakesh Jhunjhunwala increased equity stake in private sector lender Karur Vysya Bank to 4.22 percent in April-June quarter.
Jhunjhunwala Rakesh Radheshyam held 3.66 percent stake in the company as of March 2018, which reduced to 3.22 percent in June quarter. Rakesh Jhunjhunwala bought another 1 percent in June quarter.
Hence his total shareholding increased to 4.22 percent from 3.66 percent earlier.
Generally Jhunjhunwala buys stake in companies through three names which are Rakesh Jhunjhunwala, his wife Rekha Jhunjhunwala and Jhunjhunwala Rakesh Radheshyam.
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The stock recouped losses to trade mildly higher after this news but immediately wiped out gains to trade lower due to dismal performance in Q1. At 15:05 hours IST, it was trading at Rs 98.75, down Rs 1.05, or 1.05 percent on the BSE.
The private sector lender's first quarter (April-June) net profit dropped sharply by 69 percent year-on-year to Rs 45.9 crore, dented by higher provisions and weak asset quality.
Net interest income grew by 8.4 percent to Rs 583.6 crore compared to Rs 538.6 crore in corresponding period last year.
On the asset quality front, gross non-performing assets (NPA) as a percentage of gross advances increased to 7.44 percent in June quarter from 6.56 percent in previous quarter. Net NPA were also higher at 4.50 percent against 4.16 percent sequentially.
Provisions for bad loans for the quarter stood at Rs 422.7 crore, which increased 7 percent compared to March quarter and 81 percent compared to June quarter 2017. Provision coverage ratio was unchanged at 56.50 percent quarter-on-quarter.