Share prices of Federal Bank Ltd rose 7.2% during intraday trade today to reach an all time high of Rs 115.35 before settling at Rs 112.30 at close of trade on the NSE. The stock continued its stellar run from its close on Friday, when it had rallied 14% to Rs 107.60 on the back of spectacular results in the fiscal fourth quarter of financial year 2017 (Q4FY17 ).
The bank had reported a meteoric 2400% on-year basis growth in its net profits at Rs 256.59 crore for Q4FY17 against Rs 10.26 crore in Q4FY16. Net interest income (NII) grew 23% at Rs 842 crore during the fiscal fourth quarter, against Rs 791 crore in the corresponding quarter of previous fiscal. Net interest margin improved by 11 basis points (bps) on-year basis and 10 bps sequentially at 3.42%. Total income during the Q4FY17 rose to Rs 2,598.06 crore, from Rs 2,262.94 crore a year ago, Federal Bank said in a regulatory filing.
For FY17, net profit soared 75% to Rs 830.79 crore, from Rs 475.65 crore in the previous fiscal year. Likewise, total income grew to Rs 9,759.20 crore, from Rs 8,556.35 crore. The bank improved its asset quality, with net non- performing assets (NPAs) or bad loans easing to 1.28 per cent of net loans as on March 31, 2017, from 1.64 per cent at the end of March 2016.Gross NPAs read 2.33 per cent of gross advances by the end of 2016-17, slightly down from 2.84 per cent a year ago.
In absolute terms, net NPAs stood at Rs 941.20 crore at March-end, down from Rs 950.01 crore in the year-ago period. Gross NPAs came in at Rs 1,727.05 crore as against the earlier Rs 1,667.77 crore. Provisions for bad loans and contingencies came down to Rs 122.70 crore for the reported quarter, from Rs 388.64 crore a year before. Federal Bank said its board of directors has recommended a dividend of 45 per cent or Rs 0.90 per share for 2016-17. The board also cleared a hike in overall foreign holding to 74 per cent. The bank said the capital may be raised in one or more tranches.