New Delhi: Shares of Federal Bank on Friday zoomed 14%, adding Rs2,204.86 crore to the company’s market valuation, after its net profit went up manifold to Rs256.59 crore for the quarter ended 31 March.
The stock soared 13.58% to close at Rs107.45 on BSE. During the day, it skyrocketed 15.22% to Rs 109—its 52-week high.
On NSE, shares of the company surged 14% to end at Rs 107.60. Led by the sharp gain, the company’s market valuation rose by Rs2,204.86 crore to Rs18,513.86 crore. On the volume front, 72.31 lakh shares of the company were traded on BSE and over 7 crore shares changed hands on NSE during the day.
Net profit stood at Rs10.26 crore in the January-March quarter of 2015-16. The board also approved plans of capital raising of Rs2,500 crore through various means, including qualified institutional placement (QIP), rights issue, preferential issue or follow-on public offer.
Total income during the period rose to Rs2,598.06 crore, from Rs2,262.94 crore a year ago, Federal Bank said in a regulatory filing.
The bank improved its asset quality, with net non- performing assets (NPAs) or bad loans easing to 1.28% of net loans as on March 31, 2017, from 1.64% at the end of March 2016. Gross NPAs read 2.33% of gross advances by the end of 2016-17, slightly down from 2.84% a year ago.