Federal Bank shares crashed nearly 15 per cent on Wednesday after the private sector lender reported a sharp jump in non-performing loans. The stock hit its 52-week low of Rs 55.80 in morning trade.
Federal Bank's gross slippages jumped to 11-quarter high of Rs 410 crore between July and September 2015. Gross non-performing assets jumped to Rs 1,499 crore in Q2 against Rs 1,305 crore in Q1, while net NPAs stood at Rs 675 crore at the end of the September quarter against Rs 485 crore at the end of June quarter.
"Overall loan slippage of Federal Bank in 2QFY16 was higher at 3.2 per cent against 2.5 per cent in the previous quarter. Five accounts in the large corporate segment slipped, totally amounting to Rs 170 crore. Three of the five accounts amounting to Rs 100 crore were already restructured earlier. Slippage in the SME or small and medium enterprise segment was also higher at 4.6 per cent as against the earlier run-rate of 3 per cent," domestic brokerage Nirmal Bang said.
Higher provision hit bottom line, with net profit falling 33 per cent year-on-year to Rs 161 crore in the September quarter. Net interest income, the difference between interest earned on loans and given on deposits, was flat at Rs 608.
Federal Bank shares closed 12.22 per cent lower at Rs 57.45 apiece, underperforming the broader Sensex, which ended 0.13 per cent lower.