Federal Bank hits new high for the second session on Q1 result beat

Private sector lender Federal Bank hit a new record high in Wednesday’s session as the results came through. The stock marked a fresh all-time high today of Rs 203.9, gaining as much as 3 per cent today. From Friday’s close, the stock has gained 6.5 per cent.

At the last count, shares of the company traded higher by over 1 per cent at Rs 200.55 apiece on the BSE.

The company during the quarter posted its highest ever net profit at Rs 1,009.53 crore, growing 18.25 per cent on-year.The business at the bank reached Rs 4,86,871.33 crore.

Zee Business research desk estimated the lender’s profit to increase by 15.4 per cent on-year to Rs 985 crore. 

Asset quality at the private lender has also improved as the GNPA and NNPA has been brought down to 2.11 per cent and 0.60 per cent, respectively. Total deposits at the bank during the period grew 19.58 per cent, while net advances logged 24.34 per cent growth.  Net interest income, the difference between the interest earned and spent has also come in higher than estimates at Rs 2,291.98 crore. Zee Business research estimated net interest income to grow by 18.3 per cent to Rs 2,270 crore as against Rs 1,918.6 crore.

The bank in its press release stated that ROA for Q1 stood at 1.27 per cent and ROE stood at 13.64 per cent.

Importantly, even as the Bank Nifty, a high beta index, continues to trade with a drag, its constituent Federal Bank is among the two stocks which is trading in the green. The other banking index constituent trading in the green is AU Small Finance Bank.

In the last one year, the stock has gained 50 per cent as against over 11 per cent gain in the Nifty Bank index.