Federal Bank

Thanks to lower provisioning and a good surge in NII, Federal Bank posted a set of very good numbers for Q4Fy17, backed by an improvement in asset quality.  The lower bas effect also came into play.

The Bank’s net profit for the quarter rose by a jaw dropping 25 times from Rs.10 crore in previous Q4 to Rs.257 crore. NII was up 23% (YoY) at Rs.842 crore. There was a sharp drop in provisioning too – down from Rs.389 crore to Rs.123 crore (YoY) and from Rs.158 crore in Q3. A 19% (YoY) jump in other income too helped.

There was improvement in asset quality too. Net NPA fell 30 bps to 1.28% (QoQ) while Gross NPA showed a decrease of 44 bps at 2.33%.

The Bank stock price is amongst the top gainers on the bourses today with the markets enthused with the performance and also the fact that it plans to raise funds upto Rs.2500 via equity and  FII limit on total holdings is also to be raised.