Federal Bank Q3 net profit falls 38.5 per cent, shares plunge nearly 9%

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New Delhi | Updated: January 12, 2016 4:55 PM

Federal Bank shares fell as much as 9 per cent intraday after the bank registered 38.5 per cent year-on-year fall in its net profit for the quarter ended December 2015.

federal bank, q3 result, Sensex, Nifty, bse, nse, stock market todayFederal Bank shares fell as much as 9 per cent intraday after the bank registered 38.5 per cent year-on-year fall in its net profit for the quarter ended December 2015. ( Photo: Reuters)

Federal Bank shares fell as much as 9 per cent intraday after the bank registered 38.5 per cent year-on-year fall in its net profit for the quarter ended December 2015.

The bank posted a net profit of Rs 162.72 crore for the quarter ended December 2015 as compared to Rs 264.69 crore in the corresponding quarter a year ago.

At 2.37 pm, shares of Federal Bank were trading 8.03 per cent down at Rs 48.10. The scrip opened at Rs 52.50 and had touched a high and low of Rs 52.50 and Rs 47.45, respectively, in trade so far. Later, the share price of the company settled 7.74 per cent down at Rs 48.25.

Total Income decreased from Rs 2,090.01 crore for the quarter ended December 2014 to Rs 2086.07 crore for the quarter ended December 2015.

The bank’s gross non-performing assets (NPAs) increased to 3.15 per cent in the October- December quarter as against 2.19 per cent in the same quarter previous year, while net NPAs stood to 1.16 per cent.

Vaibhav Agrawal, VP research, banking, Angel Broking, said, “Federal Bank reported poor set of numbers with the bottom line declining 39 per cent YoY to Rs 162.7cr, coming in below expectations. At the current market price, the stock is trading at 1.0x FY2017E ABV. We maintain our ‘Neutral’ view on the stock.”

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