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. Provisions other than tax and contingencies rose by 90.94% to Rs87.28 crore in the second quarter of FY16 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 Rs608.34 crore during the quarter, compared to a year earlier. Non-interest income, however, saw a fall by 6.94% at Rs182.27 crore compared to the same period last year.
Asset quality saw a deterioration with the gross non-performing assets (NPAs) as a percentage of gross advances rising by 80 bps to 2.9% on a 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 a y-o-y basis while on a sequential basis it saw a rise of 35 basis points.
The operating profit of the bank witnessed a fall of 17.86% to Rs336.57 crore compared to the same period last year. The bank’s Net Interest Margins (NIM) as on September 30 stood at 3.11%, according to the company’s press statement.
Federal Bank said its total advances during the quarter, grew from Rs 48,466.14 crore to Rs 50,866.67 crore, up by 4.95% while the 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.
The net worth of the bank increased from Rs 7,410.51 crore as on September 30, 2014 to Rs 8,057.43 crore, as on September 30, 2015. The Capital Adequacy Ratio (CRAR) of the bank stood at 14.71% as at the end of the quarter.