This Jhunjhunwala stock hit 52-week high post Q2 earnings

Federal Bank share hit a fresh 52-week high today after the lender reported a 55 per cent rise in Q2 net profit. Ace investor Rakesh Jhunjhunwala held 2.64% stake or 5,47,21,060 shares in the bank at the end of September quarter.

The Jhunjhunwala couple-- under the name of Rakesh Jhunjhunwala Rekha Jhunjhunwala --bought an additional 2,10,00,000 shares or 1.01 per cent stake in the private lender.

Shares of Federal Bank rose 9.37 per cent to a fresh high of Rs 105.6 against the previous close of Rs 96.55 on the Bombay Stock Exchange (BSE). The share closed 7.77% higher at Rs 104 on BSE. The stock has gained 12% in 3 days.

Also read: Jhunjhunwala, Damani and other big investors increased stake in these firms in Q2; do you own any?

Federal Bank share is trading higher than 5 day, 20 day, 50 day, 100 day, and 200 day moving averages. Federal Bank stock has gained 84 per cent in one year and has risen 56 per cent since the beginning of this year.

In a month, the share has climbed 28.3 per cent. Market cap of the bank rose to Rs 21,856 crore on the BSE. Total 57.16 lakh shares changed hands amounting to turnover of Rs  57.15 crore on BSE. The stock hit 52 week low of Rs 49.80 on October 30, 2020.

The private sector lender reported a nearly 55 per cent rise in its consolidated net profit at Rs 488 crore for the quarter ended September 30 against net profit of Rs 315.70 crore in the year-ago period. However, total income (consolidated) fell to Rs 4,013.46 crore against Rs 4,071.35 crore in the same period of 2020-21.

The bank's asset quality showed an impairment with the gross non-performing assets (NPAs or bad loans) rising to 3.22 per cent of the gross advances as of September 30, 2021 from 2.80 per cent in the year-ago period.

Likewise, the net NPAs were also higher at 1.15 per cent as against 0.99 per cent.

In absolute value, the gross NPAs stood at Rs 4,558.19 crore by the end of September 2021 quarter, up from Rs 3,591.72 crore in the corresponding period a year ago.

Value of net NPAs were at Rs 1,595.78 crore, up from Rs 1,249.85 crore.

Provisions for bad loans and contingencies in Q2 fell to Rs 264.53 crore, from Rs 565.46 crore in the year-ago quarter. In last fiscal, the bank reported a 3.08 per cent year-on-year rise in net profit at Rs 1,590 crore.

The bank's net interest income (NII) rose 19.03 per cent to Rs 5,534 crore, while net interest margin (NIM) stood at 3.16 per cent.

Total deposits grew 13.37 per cent to Rs 1.72 lakh crore in FY21. Current account and saving account (CASA) deposits rose 25.66 per cent to Rs 58,370 crore.