Mumbai: Kerala based Federal Bank Ltd on Saturday said net profit for the July-September 2012 period increased 12% to Rs 215 crore up from Rs 191 crore in the same period last year helped by a 21% decline in provisions for tax and bad loans.
The bank set aside Rs 135 crore in the quarter ended September 2012 versus Rs 170 crore the bank had provided in the same period last year.
Federal Bank’s operating profit before provisions was actually lower than last year at Rs 350 crore down 3% from Rs 361 crore last year.
A 19% rise in other income or earnings through fees and charges to customers also contributed to Federal’s improvement in net profit.
Other income increased to Rs 139 crore up from Rs 117 crore in July-September 2011.
Net interest margin (NIM) declined to 3.58% down from 3.77% last year. NIM is the the difference between interest earned and interest expended and is considered a key matrix in measuring a bank’s profitability.
Net advances stood at Rs 36,299 crore rose 8% from Rs 33,607 crore in the quarter ended September 2011 led by a 18% rise in retail loans and 15.36% rise in loans for small and medium enterprises (SMEs).
On Friday Federal Bank shares ended little changed at Rs 482 a piece on BSE Ltd even as the benchmark 30-share Sensex dropped 0.58% to end at 18,682 points.