Federal Bank's net profit fell 21% due to a sharp rise in provisioning as the bank set aside money to deal with stress from the Covid 19 crisis.
Net profit fell to Rs 301 crore in March 2020 from Rs 382 crore a year ago.
Provisions increased to Rs 568 crore in March 2020 from Rs 178 crore a year ago and higher than Rs 161 crore in the quarter ended December.
Of the total provisions Rs 93 crore were Covid related which were higher than the Rs 30 crore required under RBI regulations.
Gross non-performing assets (NPAs), as a percentage of total advances, were stable at 2.84% in the March quarter compared with 2.92% a year-ago.
"To face any unfavorable situation that may arise due to the pandemic, we have increased the provisions substantially and strengthened the balance sheet. On the business front, the bank has achieved robust growth in the retail segment with housing and gold loans growing handsomely," said Shyam Srinivasan, CEO, Federal Bank.
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