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Federal Bank reported a net profit growth of 0.9 per cent year-on-year basis to Rs. 266 crores for the second quarter (July-September) of current fiscal year. Net profit during the corresponding quarter of the previous year stood at Rs. 263.70 crores.
The bank said in the BSE filing that net interest income (NII) during the quarter jumped 13.7 per cent year-on-year to Rs. 1,022.5 crores with loan growth at 25.2 per cent YoY and 9.8 per cent Quarter-on-Quarter basis.
Provisions and contingencies inclined to Rs. 288.82 crores (63.39% rise) during the quarter under review from Rs. 176.77 crores a year ago. On a quarter-on-quarter basis, they surged 45.03 per cent from Rs. 199.15 crores. Advances for the quarter increased by 25.17 per cent to Rs. 1.01 trillion, while deposits jumped 21.6 per cent to Rs. 1.18 trillion.
Asset quality of bank worsened in the quarter with the gross non-performing asset (NPA) surged 63.4 per cent to Rs. 3184.53 crores. The percentage of gross advances increased to 3.11 per cent as compared to 3 per cent in the previous quarter and net NPA was reported higher at 1.78 per cent than 1.72 per cent in June-end quarter.
Net interest margin improved to 3.15 per cent for the quarter ended September 2018 against 3.12 per cent in the previous quarter. Other income (non-interest income) during the quarter grew by 12.4 per cent year-on-year to Rs. 322.9 crores and operating profit jumped 20 per cent to Rs. 698 crores.
