January 16, 2018 / 4:58 AM / a month ago

BUZZ-India's Federal Bank falls; higher slippages in Q3

** Federal Bank Ltd falls as much as 6.9 pct to 105.80 rupees - biggest intraday percentage drop since Nov. 2016

** Bank posted 26 pct rise in third-quarter net profit, but missed analysts’ estimates by a small margin

** Gross bad loans as a percentage of total loans stood at 2.52 pct at end-Dec vs. 2.39 pct at end-Sept

** Slippages increased sequentially, driven by higher non-performing loans (NPLs) in corporate and retail (education loans) segment - Morgan Stanley

** Bank indicated slippages around current levels and likely increase in credit cost during Q4 owing to higher provisioning on security receipts - Morgan Stanley adds

** “Management doesn’t expect any large one-offs but we think overall NPL formation may not come down quickly” - Jefferies analysts

** Up to Monday’s close, stock had risen 56.6 pct in 12 months compared with a 38.2 pct increase in the Nifty private bank index

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