Private sector lender Federal Bank on Wednesday (July 19) launched its qualified institutional placement (QIP) issue at a floor price of Rs 132.59 per share.

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The lender, in a regulatory filing, said the Credit, Investment and Raising Capital Committee of the board of directors of the bank authorised the opening of the issue on July 19, 2023.

Also, the floor price in respect of the issue, based on the pricing formula is Rs 132.59 per equity share and the bank may, at its discretion, offer a discount of not more than 5 percent on the floor price so calculated for the issue, the lender said.

Floor price refers to the minimum price in a share issuance programme.

Federal Bank reported a 63.5 percent jump in net profit at Rs 601 crore in the June quarter on a steep decline in money set aside for bad loans. Its core net interest income grew 13.1 percent to Rs 1,605 crore during the reporting quarter on a 16 percent advance growth and a 0.07 percent expansion in the net interest margin to 3.22 percent.

Overall, other income dipped 30.2 percent to Rs 453 crore, while the operating profit was also down by 14.1 percent to Rs 973 crore. The bank’s total provisions more than halved to Rs 373 crore during the June quarter, majorly on the back of a reduction in the loan loss provisions which narrowed down to Rs 150 crore for the reporting quarter.

Shares of Federal Bank ended at Rs 135.70, up by Rs 0.90, or 0.67 percent on the BSE.

First Published:Jul 19, 2023 8:23 PM IST