Shares of Federal Bank fell over 9 per cent in trade on Tuesday after the bank reported 38.5 per cent year-on-year fall in its net profit for the quarter ended December 2015.
The bank posted a net profit of Rs 162.72 crore for the quarter ended December 2015 as compared to Rs 264.69 crore in the corresponding quarter a year ago.
The stock ended 7.74 per cent lower after hitting an intraday low of Rs 47.45, down 9.27 per cent on the Bombay Stock Exchange (BSE).
Total Income decreased from Rs 2,090.01 crore for the quarter ended December 2014 to Rs 2086.07 crore for the quarter ended December 2015.
Mr Vaibhav Agrawal, VP Research- Banking, Angel Broking said the bank has reported numbers below expectations. The expert maintained 'neutral' view on the stock.
"At the current market price of Rs 48.15, the stock is trading at 1.0x FY2017E ABV," added the expert.
The bank's gross non-performing assets (NPAs) increased to 3.15 per cent in the October- December quarter as against 2.19 per cent in the same quarter previous year, while net NPAs stood to 1.16 per cent.
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