Stock alert! Federal Bank share price jumps over 6% as RBI does this

As the Reserve Bank of India approved the re-appointment of MD and CEO of the bank, the shares of Federal Bank jumped over 6 per cent to Rs 90.9 on the BSE intraday trade amid heavy volumes.

Federal Bank said the Reserve Bank of India (RBI) has approved the re-appointment of Shyam Srinivasan as managing director and chief executive officer (MD and CEO) of the bank for a period of three years, starting from September 23, 2021.

At around 03:00 pm, the scrip was trading almost 4 per cent higher at Rs 89.05, as compared to a 0.20 per cent fall in the S&P BSE Sensex. The trading volumes on the counter jumped over three-fold, with a combined 48.56 million shares have changed hands on the NSE and BSE so far.

Federal Bank recorded gross advances of Rs 132,770 crore, up 8 per cent in the first quarter of the financial year 2021-22 (Q1FY22), as against Rs 123,437 crore in the year-ago quarter. The bank had logged advances of Rs 134,877 crore in Q4FY21.

CASA ratio in Q1FY22 rose to 34.81 per cent as against 32.02 per cent in Q1FY21 and 33.81 per cent in Q4FY21. It witnessed a liquidity coverage ratio of 215.20 per cent in the quarter under review versus 233.14 per cent in the same quarter last year and 211.74 per cent on a sequential basis.

The initial impact of Covid-19 was in check as Federal Bank has no big-ticket accounts (over Rs 100 crore) in its watch list. The restructuring book stood at Rs 1,400 crore (1.1 per cent of loans). 

The counter had touched a 52-week high of Rs 92.40 per share on March 03, 2021. It has jumped over 26 per cent since April 19, 2021.