Federal Bank profit surge, Stock lower this afternoon

Federal Bank Ltd, Kerala-based Private-sector lender, posted a 28.3% rise Q3 profit on year-on-year basis, on Thursday, at Rs 333.63 crore from Rs 260 crore last year. Net profit was Rs 334 crore in the 3 months to Dec 31, vis-a-vis Rs 260 crore a year ago period, it said. 

Asset quality was significantly high, with gross bad loans as a percentage of total loans at 3.14% at the end of Dec, in comparison with 3.11% that was in the previous quarter and 2.52% a year earlier. 

Despite posting strong profit, shares in FEDERAL BANK LTD were trading in the NSE at Rs.88.25, down 3.13%, during first afternoon session, as against the Wednesday’s closing price of Rs. 91.20.

The scrip opened at 91.90, and it touched a high and low of Rs. 92.75 and 86.40 per share, respectively.  Meantime, Sensex Nifty improved by 77 and 27 points respectively at 36,398 and 10,917 at 3.10 pm Thursday.