Federal Bank shares today fell by nearly 8 per cent as the private sector lender reported a 39 per cent fall in its third-quarter net profit.
Federal Bank today posted a 38.5 per cent drop in net profit at Rs 162.7 crore for the quarter ended December due to a rise in bad loans.
Following the announcement, shares of the company fell 9.27 per cent and touched an intra-day low of Rs 47.45, which is also its 52-week low. However, the stock gathered some lost ground and finally closed at Rs 48.25, down 7.74 per cent.
Similar movement was seen on the NSE as well, where the stock opened at Rs 52, then tanked 9.36 per cent to its 52-week low of Rs 47.40. At the end of the day's trade, the stock quoted at 48.25, down 7.74 per cent on the NSE.
The total income of the lender also came down to Rs 2,086 crore during the quarter, from Rs 2,090 crore in the year-ago period.
During the quarter, the gross non-performing assets (NPAs) rose to 3.15 per cent, from 2.19 per cent at the end of the third quarter of 2014-15.
Net NPAs of the bank also rose to 1.66 per cent of the total assets, from 0.69 per cent earlier.
Provisions (other than tax and contingencies) shot up to Rs 751.1 crore compared with Rs 8 crore in the same period last fiscal.
Moreover, the overall weakness in the broader market also dampened investor sentiment.
The 30-share benchmark Sensex ended at 24,682.03, down 143.01 points.
