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Shares of Federal Bank slipped nearly 10% to Rs 68 on the National Stock Exchange (NSE) in early morning trades, after the bank reported a 36% year-on-year (YoY) decline in its standalone net profit at Rs 141 crore due to higher provisions for non-performing assets of a large customer.
The private sector lender had posted a profit of Rs 220 crore in the year-ago quarter.
Net interest income (the difference between interest earned and interest expended) grew by single digits or 7% to Rs 605 crore over the previous year's corresponding quarter. Provisions for bad loans increased to Rs 153 crore in the June quarter from Rs 22 crore in the same quarter a year ago.
The bank’s gross non-performing assets (NPA) of gross advances rose to 2.59% in the June quarter from 2.04% in the March quarter. It was 2.22% in the year-ago period.
Net NPAs of net advances also increased to 0.98% in the June quarter from 0.73% in the preceding quarter and 0.68% in the previous year's corresponding quarter.
At 09:44 AM, the stock was down 8% to Rs 70 on the NSE. The trading volumes on the counter nearly doubled, with a combined 11.52 million shares changing hands on the NSE and BSE so far.
The private sector lender had posted a profit of Rs 220 crore in the year-ago quarter.
Net interest income (the difference between interest earned and interest expended) grew by single digits or 7% to Rs 605 crore over the previous year's corresponding quarter. Provisions for bad loans increased to Rs 153 crore in the June quarter from Rs 22 crore in the same quarter a year ago.
The bank’s gross non-performing assets (NPA) of gross advances rose to 2.59% in the June quarter from 2.04% in the March quarter. It was 2.22% in the year-ago period.
Net NPAs of net advances also increased to 0.98% in the June quarter from 0.73% in the preceding quarter and 0.68% in the previous year's corresponding quarter.
At 09:44 AM, the stock was down 8% to Rs 70 on the NSE. The trading volumes on the counter nearly doubled, with a combined 11.52 million shares changing hands on the NSE and BSE so far.
