Federal Bank's net profit rose 4.3% to Rs.400.77 crore for the quarter ended 30 June 2020 on the back of rise in net interest income and other income.
Net interest income rose 12.3% year-on-year (YoY) to Rs.1296 crore in Q1 June 2020 over Rs.1154 crore in Q1 June 2019. Other income grew 24.7% YoY to Rs.488.37 crore for the quarter ended 30 June against Rs.391.52 crore for the same quarter last year.
Commenting on the results and financial performance, Shyam Srinivasan, Managing Director & CEO, Federal Bank said "We believe we have delivered a very healthy outcome in arguably the toughest operating conditions in well over 100 years. The Bank has been exemplar, braved all challenges and held fort all along and that is encouraging. The net NPA is down to 1.22% which is the lowest for the Bank in last 20 quarters. Cost to income has improved substantially and that augurs well for the Bank. Overall an encouraging quarter, given the challenging environment and truly motivates us to ensure sensible growth with abundant caution."
Provisions and contingencies more than doubled to Rs.394.62 crore in Q1 June 2020 from ₹192.04 crore in Q1 June 2019. Federal Bank said that the aggregate provision against the likely impact of Covid-19, including the RBI mandated provision, as of 30 June 2020 stands at Rs.186.30 crore.
On the asset quality front, the ratio of gross NPAs to gross advances stood at 2.96% as on 30 June 2020 as against 2.84% as on 31 March 2020 and 2.99% as on 30 June 2019. The ratio of net NPAs to net advances stood at 1.22% as on 30 June 2020 as against 1.31% as on 31 March 2020 and 1.49% as on 30 June 2019.
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