Private sector lender Federal Bank reported a near 50 per cent jump in net profit for the September quarter on lower provisions and improvement in asset quality even as its total income shrunk.
The net profit stood at Rs 460 crore compared with Rs 308 crore in the year-ago period. Total income fell about 3 per cent at Rs 3824 crore from Rs 3937 crore.
Operating profit fell by about 9 per cent at Rs 865 crore from Rs 947 crore over the same period. However, a 54 per cent lower provisions at Rs 245 crore helped the net profit surge. Amortisation of the Rs 166 crore of additional liability on account of revision in family pension also helped.
The bank's asset quality improved on a sequential basis with the gross non-performing assets ratio being at 3.24 per cent at the end of September as compared with 3.50 per cent a quarter ago. Its net NPA stood at 1.12 per cent as against 1.23 per cent earlier.
"Our credit cost was negative in this quarter helped by reduced slippages and higher recovery and upgrade," managing director Shyam Srinivasan said.
The lender's gross advances grew 9.7 per cent year-on-year to Rs 1.37 lakh crore while deposits rose at almost the same rate to Rs 1.72 lakh crore.
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