Federal Bank declines 5% on profit booking post strong Q3FY23

In the past six months, the stock of Federal Bank rallied 40 per cent, as compared to 12 per cent rise in the S&P BSE Sensex

Shares of Federal Bank dropped 5 per cent to Rs 135.35 from Rs 142.95 in Tuesday’s intra-day trade, on profit booking, after the private sector lender reported strong 54 per cent year-on-year (YoY) jump in profit after tax (PAT) at Rs 804 crore in December quarter (Q3FY23). The stock opened 2 per cent higher at Rs 142.85 per share.

The healthy profit growth mainly led by robust credit growth, sharp margin uptick, and continued lower LLP, were partly offset by higher staff costs due to ad hoc provisions for wage revision.

Net Interest Income (NII) for the quarter