Federal Bank stock slips 8% post Q3 results

Shares of Federal Bank on Tuesday settled nearly 8% down amid concerns regarding the private sector lender's dud assets.

The stock opened at Rs 112.40, then fell to an intra-day low of Rs 104.10, down 8.07% over its previous closing price. It settled at Rs 104.75, down 7.51% on BSE.

On NSE, the stock opened at Rs 112.20, then fell to a low of Rs 104.10 and finally settled at Rs 104.80, down 7.75%.

The South-based Federal Bank yesterday reported a 26% growth in December quarter net profit at Rs 260 crore.

During the quarter, the gross non-performing assets (NPAs) stood at 2.52% and there were fresh slippages of Rs 411 crore.

Overall provisions marginally rose to Rs 162 crore from Rs 158 crore on an annual basis.

"Slippages during the quarter were diversified with a surprising Rs 71 crore coming in from education loans in its biggest market of Kerala," CEO and MD Shyam Srinivasan said.

Srinivasan noted that the bank is yet to be communicated about any divergences in bad asset recognition from RBI and impact, if any, will be recognised in the fourth quarter.

Barring one account, it is not carrying any exposure to any of the 40 dud accounts mandated by RBI to be resolved under the provisions of Insolvency and Bankruptcy Code (IBC), he said.

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