Federal Bank hits a new low

By Research Desk
about 9 years ago

Federal Bank is currently the top loser on the BSE, down over 11% at Rs.58 and this is after it hit a new 52-week low today at Rs.55.80.

The market is unhappy with Federal Bank’s Q2FY16 performance which has slipped on both profitability as well as asset front. It posted a 33% (YoY) drop in net profit at Rs.161 crore. Net interest income, the difference between interest earned on loans and given on deposits, was flat at Rs 608 crore.

In terms of asset quality, Gross NPA rose from 2.59% to 2.9% (QoQ) while Net NPA also rose from 0.98% to 1.33%. Provisions were at Rs.87 crore, down from Rs.153 crore it had made in Q1. In terms of slippages, it has jumped up to a 11-quarter high at Rs.410 crore.

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