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Federal Bank hits record high on healthy Q2 results

The stock hit a new high of Rs 124, up 6% on the BSE after the bank reported 31% yoy growth in net profit at Rs 264 crore in Q2FY18.

SI Reporter  |  Mumbai 

Federal Bank net profit up 18%

hit a new high of Rs 124, up 6% on the BSE after the bank reported 31% year on year (yoy) growth in net profit at Rs 264 crore in September quarter (Q2FY18), on back of higher interest income. It had posted a net profit of Rs 201 crore in the same quarter last fiscal.

The bank’s net interest income (interest earned minus interest expended) rose by 24% to Rs 899 crore in Q2FY18 from Rs 726 crore in the same quarter a year ago.

The brokerage firm ICICI Securities expected NII of Rs 853 crore and net profit of Rs 241 crore for the quarter.

The asset quality showed some improvement in percentage terms on year on year as well as on sequential basis. The gross non-performing assets (GNPAs) at 2.39% at end of September 2017 as against 2.78% per cent a year. Net NPAs stood at 1.32% in Q2FY18 as against 1.61% in Q2FY17. The gross and net NPAs were at 2.42% and 1.39%, respectively, in Q1FY18.

The bank has witnessed an improvement in its financials in the last five years.

The trading volumes on the counter jumped nearly four-fold with a combined 41.92 million shares changed hands on the BSE and NSE till 02:26 PM.
 

First Published: Mon, October 16 2017. 14:29 IST
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