1 week ago

Federal Bank Shares Drop as Jana SFB Acquisition Talks Emerge

Federal Bank is reportedly considering buying control of Jana Small Finance Bank.

The report says Jana SFB’s promoter may sell its 16.9% stake.

If the deal happens, Federal Bank may also have to offer to buy shares from other Jana SFB investors.

The details have not been officially announced.

Investors reacted by pushing Federal Bank’s shares lower.

Jana SFB’s shares also fell during trading.

Federal Bank recently reported higher profits and stronger interest income.

Its bad-loan measures and provisions also improved in the latest quarter.

Key facts

Reported stake: Jana Small Finance Bank’s promoter could sell its entire 16.9% stake to Federal Bank.
Potential obligation: Federal Bank may need to make an open offer to Jana SFB’s remaining shareholders if the acquisition is completed.
Federal Bank share move: Shares were down nearly 4% on August 25 and traded 2.5% lower at Rs 349 at 1 pm.
Jana SFB share move: Jana Small Finance Bank shares were down nearly 2.38% at Rs 568 at 1 pm.
June-quarter net profit: Federal Bank’s net profit rose 36.6% year-on-year to Rs 1,177 crore.
Net interest income: Net interest income increased 26.1% year-on-year to Rs 2,946 crore.
Asset quality: Gross NPA declined to 1.52% from 1.62% in March, while net NPA improved to 0.18% from 0.20%.

freepressjournal.in · 1 week ago