Federal Bank drops on dismal quarter results

It posted a 96% decline in net profit to Rs 10 crore for the fourth quarter ended March 31, owing to higher provisioning

Shares of Federal Bank have slipped over 2% on posting a 96% decline in net profit to Rs 10 crore for the fourth quarter ended March 31, owing to higher provisioning.

Meanwhile, the bank posted a net profit of Rs 280 crore in the same period last year. Total income during January-March jumped to Rs 2,253 crore, from Rs 2,214 crore in the year-ago period.

According to the company’s balance sheet, its provisions rose to Rs 389 crore in January-March, from Rs 40 crore in the same period of the 2014-15 financial year. For the full financial year, profit sharply declined to Rs 486 crore, from  Rs 1058 crore in 2014-15 financial year.

The company’s board recommended a dividend of 35% —Rs 0.70 per equity share on face value of Rs 2 each for the year 2015-16.

Shares of Federal Bank opened at Rs 44 and touched a low of Rs 43.75 on the BSE. A total of 262,134 shares changed hands on the BSE so far.