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.
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.