Federal Bank posts marginal growth in quarterly profit
Net profit for the September quarter stood at Rs 266.04 crore compared to Rs 263.70 crore a year ago
Mumbai: Federal Bank Ltd on Tuesday reported a subdued 0.88% rise in its September-quarter net profit as it provided higher provisions to cover its bad loans. Net profit for the quarter stood at Rs 266.04 crore compared to Rs 263.70 crore a year ago. That’s higher than the Rs 253.50 crore estimated by analysts tracked by Bloomberg.
Provisions and contingencies increased 63.39% to Rs 288.82 crore in the quarter from Rs 176.77 crore a year ago. On a quarter-on-quarter basis, they surged 45.03% from Rs 199.15 crore.
Asset quality worsened in the quarter with gross non-performing assets (NPAs) surging 63.4% to Rs 3184.53 crore at the end of the September quarter from Rs 1948.97 crore in the same quarter last year.
As a percentage of total loans, gross NPAs stood at 3.11% as compared with 2.39% in the year-ago quarter. Net NPAs were at 1.78% against 1.32% a year ago.
Net interest income (NII), or the core income a bank earns by giving loans, was up 13.75% to Rs 1,022.47 crore versus Rs 898.91 crore last year. Other income was at Rs 322.89 crore, up 12.4% from Rs 287.22 crore a year ago.
Advances for the quarter grew 25.17% to Rs 1.01 trillion, while deposits rose 21.6% to Rs 1.18 trillion.
At 1.43pm, shares of Federal Bank rose 7% to Rs 81.10 on BSE while India’s benchmark Sensex Index rose 0.66% to 35096.51 points.
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