Federal Bank's second quarter (July-September) profit grew 0.9 percent year-on-year to Rs 266 crore, impacted by sharp rise in bad loans provision. However, other income, operating income and NII helped the bottomline.
Net interest income during the quarter increased 13.7 percent year-on-year to Rs 1,022.5 crore with loan growth at 25.2 percent YoY (9.8 percent QoQ), the bank said.
Net interest margin improved to 3.15 percent for the quarter ended September 2018 against 3.12 percent in previous quarter.
Bank's asset quality weakened further in the quarter gone by. Gross non-performing asset (NPA) as a percentage of gross advances increased to 3.11 percent against 3.00 percent in previous quarter and net NPA was higher at 1.78 percent against 1.72 percent in June quarter.
Federal Bank said provisions and contingencies increased sharply by 45 percent sequentially (63.4 percent year-on-year) to Rs 288.8 crore.
Fresh slippages for the quarter were higher at Rs 477 crore against Rs 461 crore in previous quarter, the bank said, adding the restructured standard assets were at Rs 577 crore in September quarter against Rs 581 crore in June quarter.
Other income (non-interest income) during the quarter grew by 12.4 percent year-on-year to Rs 322.9 crore and operating profit jumped 20 percent to Rs 698 crore.
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