Shares of Federal Bank today recovered from early losses and closed over 1 per cent higher after the company said most of the asset quality worries are behind and it is keen to expand loan book going forward.
The stock erased all its early losses of nearly 5 per cent and ended the day with a gain of 1.31 per cent at Rs 46.55 on BSE.
On NSE, it climbed 1.3 per cent to close at Rs 46.45.
After reporting a massive 96 per cent plunge in March quarter net profit on massive jump in bad loan provisions, Federal Bank today said most of the asset quality worries are behind it and it is keen to expand its loan book going forward.
"We enter FY17 with a better operating run rate as we have addressed most of the large credit issues. The restructured book has come down by 25 per cent and the fresh slippages are only 10 per cent. We see a relatively more optimistic FY17," Federal Bank managing director and chief executive Shyam Srinivasan told reporters here.
In the March quarter numbers announced over the weekend, the Kochi-based bank reported a whopping 96 per cent plunge in its net income at Rs 10.26 crore, as it provisions jumped almost 11-fold to Rs 388.64 crore from Rs 39.78 crore.
