Federal Bank stock slumps 7% as Q1 net drops

Shares of Federal Bank slumped nearly 7 per cent today after it reported 35.8 per cent fall in net profit for the first quarter of 2015-16.
The stock tumbled 6.72 per cent to end the session at Rs 70.75 on the BSE. During the day, it had slipped 9.69 per cent to Rs 68.50.
On the NSE, it dipped 6.72 per cent to close at Rs 70.70.
"Federal Bank reported an under-expected result," said Achin Goel, Head Wealth Management & Financial Planning, Bonanza Portfolio Ltd.
Federal Bank on Saturday reported 35.8 per cent fall in its net profit at Rs 141.39 crore for the first quarter of 2015-16. Its net profit was Rs 220.23 crore in the same quarter of last fiscal.

Total income of the bank increased to Rs 2,107.09 crore during the quarter under review, from Rs 1,928.04 crore in the year-ago period, Federal Bank had said in a BSE filing.
Provisioning towards bad loans and contingencies was raised substantially to Rs 153.10 crore during the quarter as against Rs 22.08 crore set during the same period, a year ago.
The bank's gross non-performing assets (NPAs) or bad loans rose to 2.59 per cent of gross advances during the quarter as against 2.22 per cent in the same period of last fiscal.