Home / Companies / Company Results /  Federal Bank Q2 net profit rises nearly 50%, NII up 7%
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Federal Bank on Friday reported a standalone net profit of 460.26 crore for the second quarter ended September, up nearly 50% as compared to 370.6 crore in the same quarter of the previous fiscal. The lender's net interest income, difference between interest earned and interest expended, surged around 7% to 1,479.4 crore from 1,380 crore year-on-year (YoY).

Federal Bank's asset quality improved on a sequential basis as gross NPA came at 3.24% as against 3.50% in the previous quarter. Its net NPA stood at 1.12% from 1.23% quarter-on-quarter (QoQ). However, the gross NPA during the year-ago quarter stood at 2.84% whereas net NPA at 0.99%.

Provisions (other than tax) and contingencies declined to 245 crore as against 543 crore in the previous quarter and 532 crore in the year-ago quarter. Meanwhile, its tax expense during Q2FY22 was reported at 159 crore versus 106.8 crore from the corresponding quarter of the previous fiscal.

Its capital adequacy ratio (under Basel-III) was at 14.97% in Q2 from 14.64% QoQ. Whereas, net interest margin (NIM) stood at 3.2% from 3.15% in the previous quarter.

Federal Bank further informed that “on account of uncertainties prevailing due to COVID-19 pandemic across the world and in India, the extent to which the same will impact the bank’s operations and financial position in future will depend on various aspects including actions taken to mitigate its impact and other regulatory measures."

The bank’s capital and liquidity position is strong and would continue to be the focus area for the bank during this period. The extent to which the COVID-19 pandemic will continue to impact the bank's results will depend on the future developments related to the situation, as well as the outcomes of the actions taken to contain the same, it added.

Shares of Federal Bank were trading over 2% lower at 94 per share on the BSE in Friday's afternoon deals.

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