Mumbai: Federal Bank Ltd on Friday said its net profit for the March quarter surged 25 times from a year ago owing to a low base last year.
Net profit for the quarter rose a huge 2400% to Rs256.59 crore from Rs10.26 crore a year ago. A Bloomberg poll of 16 analysts had forecast a net profit of Rs225.90 crore.
Net interest income (NII), or the core income a bank earns by giving loans, increased 22.8% to Rs842.39 crore from Rs686.09 crore last year. Other income jumped 19.4% to Rs282.11 crore from Rs236.27 crore in the same period last year.
Provisions and contingencies fell 68.43% to Rs122.70 crore in the quarter from Rs388.64 crore in the same quarter last year. On quarter on quarter basis, it fell 22.7% from Rs158.82 crore.
The bank’s gross non-performing assets (NPAs) fell 11.5% to Rs1,727.05 crore at the end of the March quarter from Rs1,951.55 crore in the December quarter. On year-on-year basis, it rose marginally by 3.6% from Rs1,667.77 crore.
As a percentage of total loans, gross NPAs fell to 2.33% at the end of the March quarter, as compared to 2.77% in the previous quarter and 2.84% in the year-ago quarter. Net NPAs were at 1.28% in the quarter from 1.58% in the previous quarter and 1.64% in the same quarter last year.
Deposits rose 23.4% to Rs97.66 billion, while advances rose 26.2% to Rs73.34 billion.
At 1.32pm, Federal Bank was trading at Rs102.30 on the BSE, up 8.1% from its previous close, while India’s benchmark Sensex index fell 0.35% to 29,924.09 points.