Federal Bank Ltd on Monday reported a 31% jump in its September quarter net profit due to improved asset quality and higher net interest income.
The bank reported a profit of Rs263.70 crore compared to Rs201.24 crore a year ago. The consensus of analyst estimates had pegged the profit at Rs254.40 crore.
Net interest income (NII) or the core income a bank earns by giving loans increased 23.8% to Rs898.91 crore versus Rs726.19 crore last year. Other income rose marginally by 5.57% to Rs287.22 crore from Rs272.07 crore in the same period last year.
Asset quality of the bank improved during the quarter. As a percentage of total loans, gross non-performing assets (NPAs) fell to 2.39% as compared to 2.42% in the previous quarter and 2.78% in the year-ago quarter. Net NPAs were at 1.32% in the September quarter compared to 1.39% in the previous quarter and 1.61% in the same quarter last year.
Gross NPAs amounted to Rs1,948.97 crore, up 7.1% from a year ago.
Provisions and contingencies fell 25.24% to Rs176.77 crore from Rs236.44 crore a quarter ago. On year-on-year basis, it rose 5% from Rs168.40 crore.
Advances for the quarter grew 24.7% to Rs80,645.88 crore from a year ago. Deposits went up by 12.64% to Rs97,210.75 crore.
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