Federal Bank reported on Friday that its standalone net profit rose 63.5% to Rs 600.6 crore in the first quarter ended June 30, 2022, compared to Rs 367 crore a year earlier. Federal Bank shares were up nearly 1% at Rs 98 a share on BSE in afternoon trade.

Meanwhile, its net interest income or NII, which is the difference between interest earned and interest paid, rose 13% year-on-year to Rs 1,604.5 crore, compared to Rs 1,418 crore year-on-year (YoY). Its net interest margin (NIM) improved to 3.22%, up seven bps YoY and six bps QoQ.

Federal Bank’s asset quality improved as gross non-performing assets (NPA) stood at 2.69% in the first quarter of fiscal 2023 compared to 2.80% in the previous quarter. On the other hand, lenders have net NPAs of 0.94% and 0.96% QoQ.

Provisions (excluding taxes) and contingency increased to Rs 1,667 crore from Rs 750 crore a year ago, down from Rs 640 crore a year ago. The capital adequacy ratio under Basel III rose from 15.77% in the March 2022 quarter to 14.64 in the June 2021 quarter, at 14.57%. The bank said its other income of Rs 453 crore was impacted by treasury gains and revaluation losses on investments.

The bank’s total savings deposits increased by 12% year-on-year, while CASA (Current Account Savings Account) increased by 15% year-on-year, with a CASA ratio of 36.84%. Meanwhile, its total prepayments rose 16% from a year earlier.

Federal Bank shares are up more than 12% in 2022 (year-to-date), while benchmark Sensex shares are down about 9%.