The results of the third quarter of Federal Bank displayed a net profit of ₹ 803.61 Crores surging from ₹ 521.73 crores in the year-ago quarter. The results that were reported on 16th January, showed an impressive 54% rise in its quarter that ended in December, with net profit at ₹ 803.61 crores on higher net interest income and lower provisions.
One of the fast-growing private banks, Federal Bank posted a net profit of ₹ 521.73 crores in the year-ago quarter.
The results also revealed that the provisions and contingencies of this Kochi-headquartered private lender were reduced by 7.1 percent to ₹ 198.69 crores from ₹ 213.98 crores the previous year. Sequentially, too, they were down from ₹ 267.86 crores in the September quarter. These were down in the second quarter also, from ₹ 267.86 crores in a succession.
Federal Bank’s Net Interest Income (NII) i.e. its income from loans, rose by 27.1 percent to ₹ 1956.53 crore from ₹ 1,538.90 crores in the year-ago quarter. Adding further, its other income increased 10.3 percent to ₹ 534 crore from ₹ 484.19 crore in the same period of the previous year.
There was an improvement in the non-performing assets (NPAs) and net interest margins. Federal Banks’ gross non-performing assets were reduced slightly by about 5.8 percent to ₹ 4,147.85 crore at the end of the last quarter from ₹ 4,401.26 crore in the same quarter of the previous year.
Its advances for the quarter upped by 19.08 percent to ₹ 1.71 lakh crores from the earlier year. Deposits increased by 15 percent to ₹ 2 lakh crores. The shares of Federal Bank were trading at ₹142.45 per share, which was a three percent higher in the early afternoon.