Federal Bank shares rise on 31% surge in Q2 net profit

NEW DELHI: Shares of Federal Bank advanced 2 per cent in Tuesday’s trade after the bank’s net profit rose 31 per cent to Rs 264 crore in the quarter ended September from Rs 201 crore a year earlier, driven by a 25 per cent growth in loans, stable margins and steady asset quality.

Following the development, the stock advanced 2 per cent to Rs 127.30 on BSE. It opened at Rs 126.70 and touched an intraday high and low of Rs 127.75 and Rs 125.95 respectively, in the first hour of trade.

The bank earned a net interest income (NII) of Rs 899 crore up 24 per cent year-on-year while net interest margin for the quarter stood at 3.31 per cent little changed from the 3.32 per cent recorded last year.

Commenting on the results, Federal Bank CEO, Shyam Srinivasan said, “This is seventh consecutive quarter in which the operating profit of the bank has increased which shows the underlying strength of the bank. Even between the first and the second quarters this year, each of our businesses grew by 5 per cent to 6 per cent.”

The scrip touched its fresh 52-week high of Rs 127.75 on October 17, 2017 and its 52-week low of Rs 61.85 on December 26, 2016.