Around 5 percent of the Federal Bank shares are falling around 2pm.
The bank has declared its quarterly results, which are better than the estimates of the experts.
Compared to the October-December quarter of 2017, the federal bank’s profits increased by 28.3% in the same period of 2018 due to reduced provisions. The bank’s profits increased to Rs 333.63 crore from Rs 260 crore. Meanwhile, the net interest income of the Federal Reserve rose by 13.4% to Rs. 1,077.3 crores from Rs. 950 crores, while other earnings were Rs. 345.5 crores against Rs. 228.6 crores.
Significantly, the decline in the provision of federal bank profits had a great effect. Bank’s provisional savings decreased by 34.2% year-on-year basis to Rs 190 crores. In comparison to the previous quarter, the net NPA ratio of the Federal Bank improved from 1.78% to 1.72% and the net interest margin was 3.17% against 3.15%.
Federal Bank’s total advances have increased by 25% over the year-on-year basis.
Commenting on the outcome of the bank, major broking firm ICICI Securities has said that the results of the Federal Bank are somewhat weak with our estimates. However, due to low provision, the net profit was more than expected.
The Federal Bank’s share in BSE opened at Rs 91.95 with a marginal increase compared to the previous closed level of Rs 91.40. While doing business in the green trail, the announcement of the results started weakening and it slipped down to the lower price of 86.60 rupees. At around 2 pm, it is running at Rs 87.05 with a decline of 4.35 rupees or 4.76%.
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