Federal Bank executive director Ganesh Sankaran resigns; stock falls 7%

The stock slipped 7% to Rs 89 after Ganesh Sankaran, Executive Director, announced that he will step down with effect from February 15, 2019.

Shares of Federal Bank fell 7 per cent to Rs 89 per share on the National Stock Exchange (NSE) in intra-day trade, after Ganesh Sankaran, the executive director of the bank, announced that he will step down with effect from February 15, 2019. The stock was the largest loser among the Nifty Bank index.

“Ganesh Sankaran, executive director on the board of the Bank has informed of his desire to take up other opportunities in the financial services sector and thereby step down from the board of the Bank with effect from 15th February 2019,” Federal Bank said in a regulatory filing on Saturday, January 12, 2019.

A meeting of the board of directors of Federal Bank is scheduled on January 17, 2019, to consider and approve consideration of un-audited financial results of the Bank for the period ended December 31, 2018.

“Federal Bank will continue to have strong PPOP (pre-provision operating profit) on back of steady NII growth on steady margins, lower opex. We also expect provisions to come down on no MTM losses,” analysts at Prabhudas Lilladher said in an earnings preview.

Asset quality to slight deteriorate as SME/agri slippages are likely to be higher but should be under control and within guidance, it added.

At 11:05 am; Federal Bank was trading 5 per cent down on the NSE, as compared to 0.62 per cent decline in the Nifty 50 index. The trading volumes on the counter nearly doubled with a combined 15.33 million equity shares changed hands on the BSE and NSE so far.