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Federal Bank surges on better than expected Q2 earnings

The stock surged 12% at Rs 80 on back of heavy volumes on BSE.

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SI Reporter Mumbai
Last Updated : Oct 21 2013 | 11:13 AM IST
Federal Bank has surged 12% to Rs 80.10 in early morning deals on BSE after reporting  better than expected 5% year on year (yoy) growth in net profit at Rs 226 crore for the quarter ended September 2013 due to lower provisioning for bad loans. Analysts on an average analyst estimated net profit of Rs 149 crore for the quarter.

On the operating front, Net Interest Income (NII) grew at a moderate pace of 8.4% yoy to Rs 548 crore in July-September quarter (Q2FY2014) over the previous year. Provisioning expense came in at Rs 11 crore as against Rs 30 crore in Q2FY2013.

On the asset quality front, gross NPAs (non performing assets), on an absolute basis, remained flat sequentially, while net NPAs increased by 10.1%.

The stock opened at Rs 73.20 and hit a high of Rs 80.15 on BSE. A combined around 500,000 shares change hands on the counter on BSE and NSE.
 

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First Published: Oct 21 2013 | 9:31 AM IST

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