1. Federal Bank posts 33% fall in profit

Federal Bank posts 33% fall in profit

Federal bank on Tuesday reported a 32.88% fall in net profit at Rs 161.28 crore for the second quarter compared to the same period last year even as the lender saw a considerable rise in provisions.

By: | Mumbai | Updated: October 21, 2015 12:25 AM
Federal bank

Federal Bank on Tuesday said its net profit for the July-September quarter fell 32.88% to Rs161.28 crore compared to the same period last year, even as the lender saw a considerable rise in its provisions. (Source: Federal Bank)

Federal bank on Tuesday reported a 32.88% fall in net profit at Rs 161.28 crore for the second quarter compared to the same period last year even as the lender saw a considerable rise in provisions.

Provisions other than tax and contingencies rose by 90.94% to Rs 87.28 crore in the second quarter compared to the same period last year.

Net interest income (NII)—the difference between interest earned and interest expended— saw a marginal rise by 0.42% at Rs 608.34 crore compared to the second quarter of FY15. Non-interest income however saw a fall by 6.94% at Rs 182.27 crore compared to the same period last year.

fed-bank

Asset quality saw a deterioration with gross NPAs as a percentage of gross advances rising by 80 bps to 2.9% on y-o-y basis. Even on a sequential basis, gross NPAs saw a rise by 31 bps. Net NPAs also surged by 67 basis points to 1.33% on y-o-y basis while on a sequential basis it saw a rise of 35 bps.

The operating profit witnessed a fall of 17.86% to Rs336.57 crore compared to the same period last year. The bank’s net interest margins as on September 30 stood at 3.11%, according to a press release.

The bank said total advances grew from Rs 48,466.14 crore to Rs 50,866.67 crore, up by 4.95% while total deposits increased from Rs 64,563.86 crore as on September 30, 2014, to Rs 73,783.20 crore as on September 30, 2015.

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