 "Federal Bank scrip falls on quarterly results")
Federal Bank’s shares fell 12 per cent to close at Rs 57 on the BSE exchange, after market disappointment at its September quarter results.
Net profit declined 32.8 per cent to Rs 161 crore, as compared to Rs 240 crore in the same quarter a year before. Net interest income growth was almost flat at Rs 608 crore. Provisions and contingencies jumped to Rs 87.3 crore from Rs 45.7 crore.
Shyam Srinivasan, managing director and chief executive, said slippage was due to a restructured loan book. The portfolio of stressed assets — gross non-performing asset plus restructured loans – has been around 7.6 per cent of the total for many quarters. Some part of the restructured portfolio was undergoing stress and could not meet the minimum credit requirement.
Reliance Securities said the performance was below expectation, marred by higher slippages and muted business growth. It noted the management's expectation of improvement on these counts but said “we remain cautious on the strategy as the bank has frequently failed to deliver on key guidance (forecasts)”.
Net profit declined 32.8 per cent to Rs 161 crore, as compared to Rs 240 crore in the same quarter a year before. Net interest income growth was almost flat at Rs 608 crore. Provisions and contingencies jumped to Rs 87.3 crore from Rs 45.7 crore.
Shyam Srinivasan, managing director and chief executive, said slippage was due to a restructured loan book. The portfolio of stressed assets — gross non-performing asset plus restructured loans – has been around 7.6 per cent of the total for many quarters. Some part of the restructured portfolio was undergoing stress and could not meet the minimum credit requirement.
Reliance Securities said the performance was below expectation, marred by higher slippages and muted business growth. It noted the management's expectation of improvement on these counts but said “we remain cautious on the strategy as the bank has frequently failed to deliver on key guidance (forecasts)”.