 "Federal Bank net profit up 18%")
Federal Bank’s stock price surged up to 4.1 per cent at Rs 174.60 per share on the BSE in Wednesday’s intraday deals. The surge in stock price came amidst speculations around the next Managing Director and Chief Executive Officer (MD & CEO) of the bank.
According to reports, Federal Bank has submitted three names to the Reserve Bank of India (RBI) for the position of MD & CEO. The list comprises a combination of internal and external contenders including KVS Manian, who previously held the position of Deputy Managing Director at Kotak Mahindra Bank.
As for internal candidates, Shalini Warrier and Harsh Dugar, both serving as executive directors of the bank, are being considered for the role.
Reportedly, last month, Shyam Srinivasan, the current MD and CEO of Federal Bank, disclosed that the lender's board had established a search panel to assess candidates for the position. Srinivasan, who has been serving as the CEO of Federal Bank, is set to conclude his term in September 2024.
Federal Bank experienced stagnant growth in its net profit for the quarter ended March 31, 2024. The lender reported a net profit of Rs 906.30 crore for the fourth quarter of the fiscal year 2024, during which it incurred a pension provision of Rs 162 crore. This compares to a net profit of Rs 902.61 crore in the same period of the previous year.
Despite this, the net interest income of the bank witnessed an increase of 14.97 per cent to Rs 2,195.11 crore, driven by robust growth in advances. Net advances surged from Rs 1.74 trillion as of March 31, 2023, to Rs 2.09 trillion.
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At 14:08 PM; the stock of the company was trading 3.35 per cent higher at Rs 172.95 per share on the BSE. By comparison the BSE Sensex climbed up by 0.34 per cent.
The stock of the Federal Bank is presently trading at a price to earnings multiple of 10.95 times with an earning per share of Rs 15.28.
