Saturday, October 27, 2007

Federal Bank Q2 Results (Unaudited) To Boost Schemes' Performance

Federal Bank has posted a profit after tax of Rs 95.33 crore for the quarter ended 30 September 2007 up 37% against the corresponding quarter previous year. The operating income for the quarter was up 33% at Rs 675.06 crore against the corresponding quarter previous year. As an impact of the impressive Q2 results of the bank its share price surged 2.32% to Rs 392.45 reported at BSE at 11.45 AM on 26 October 2007.

The rising prices of shares on the stock market will have a positive impact on the NAVs of the various mutual funds. Franklin India Prima Fund - (G) will benefit the most as it has highest exposure to Federal Bank among the peer groups who have invested into the stocks of the bank. The scheme has 4.79% of its portfolio holding in the company with 20 lakh shares as on September 2007. It is followed by Birla Taxplan'98 (4.72% of its portfolio size), Reliance Banking Fund - (Bonus) (4.66%), Lotus India Mid Cap Fund (G) (4.36%) as on September 2007.

UTI-Banking Sector Fund (D) was holding 88,266 shares on 31 August 2007 has sold 15,000 shares decreasing its stake to 73,266 units as on September 2007 and is less likely to benefit. Lotus India Mid Cap Fund (G) was holding 63,942 units as on 31 August 2007 has sold its 6,273 shares decreasing their stake to 57,669 units as on September 2007 and thus the gain will be lower.

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