At Rs 240.3 cr, Federal Bank net rises 6.42%

Written by fe Bureau | Mumbai/Kochi | Updated: Oct 17 2014, 07:22am hrs
Private sector lender Federal Bank on Thursday reported a net profit of Rs 240.3 crore, up 6.42% y-o-y for the quarter ended September 30, backed by rise in other income, up 36.58%, and net interest income and continued improvement in asset quality.

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Net interest income recorded a growth of 10.48% y-o-y to R605.80 crore and net interest margins (NIMs) to 3.35%, an improvement of 10 bps from the preceding quarter. Our NIMs have been in the range of 3.30-3.25%. We certainly seek to continue this, said Shyam Srinivasan, managing director and CEO of the bank.

Other income increased 36.58% y-o-y to R195.86 crore. Srinivasan said other income increased due to credit growth, which helped grow fee income. Treasury and foreign exchange operations also contributed to non-interest income.

Gross NPAs increased to R1,031.05 crore from R1,016.43 crore on a sequential basis, and net NPAs went up to R318.5 crore from R303.89 crore.

In terms of percentage-to-gross advances, gross NPAs came down by 12 bps to 2.10% and net NPAs decreased 2 bps to 0.68%.

Slippages and restructured loans stood at R174 crore and R68 crore, respectively. Net advances

rose 14.79% y-o-y to R48,466.14 crore with the small and medium enterprises (SME) business growing at 25.95% y-o-y to R11,821.19 crore.

Total deposits grew to R56,793.74 crore, a rise of 13.68% y-o-y. Deposit growth was backed by 26.46% and 18% growth in NRE and resident savings deposits, respectively. The current and savings accounts ratio stood at 30.56% of total deposits.