Views on Federal Bank 3QFY2016 Result: Angel Broking

Views of Mr. Vaibhav Agrawal (VP Research- Banking, Angel Broking) on Federal Bank 3QFY2016 Results:

"Federal Bank reported poor set of numbers with the bottom line declining 39% YoY to INR 162.7cr, coming in below expectations. On the operating front, Net Interest Income for the bank rose marginally by 3.1% YoY, while non-interest income saw a dip of 16.6% YoY, leading to a decline in the operating profit at INR 788.5cr as compared to INR 807.1cr a year ago. Provisions came in at INR 75.1cr as compared to provision write-back of INR 0.8cr in 3QFY2015. Asset quality woes continued with the reported Gross NPA ratio at 3.15% in the current quarter as against 2.90% in 2QFY2016 and 2.19% in 3QFY2015. At the CMP, the stock is trading at 1.0x FY2017E ABV. We maintain our NEUTRAL view on the stock."

Shares of FEDERAL BANK LTD. was last trading in BSE at Rs.47.8 as compared to the previous close of Rs. 48.6. The total number of shares traded during the day was 149368 in over 825 trades.

The stock hit an intraday high of Rs. 48.2 and intraday low of 46.95. The net turnover during the day was Rs. 7104736.

Source : Equity Bulls

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