Federal Bank Q3 net rises 28% on NII boost, provisions grow 17%

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New Delhi | Published: January 18, 2019 2:43:43 AM

Federal Bank on Thursday reported a 28.31% year-on-year rise in its net profit to Rs 333. 63 crore for the quarter ended December, led by an increase in its net interest income (NII) and operating profit.

federal bank, niiThe private sector lender’s slippages rose to Rs 426 crore, a 3.65% increase year-on-year from Rs 411 crore.

Federal Bank on Thursday reported a 28.31% year-on-year rise in its net profit to Rs 333. 63 crore for the quarter ended December, led by an increase in its net interest income (NII) and operating profit. The bank’s total income increased by 20.72% to Rs 1,422.84 crore, compared with Rs 1,178. 63 crore. The Kerala-based lender had posted a net profit of `260.01 crore in the year-ago quarter.

Provisions jumped 17.04% to Rs 190.12 crore during the quarter from Rs 162.43 crore a year ago. On a sequential basis, provisions dropped 34.17% from Rs 288.82 crore.

The net interest income (NII), the core income a bank earns by giving loans, increased by 13.4% year-on-year to Rs 1,077.29 crore, against `950 crore in Q3FY18. The operating profit rose by 26.08% to `707.83 year-on-year from Rs 561.4.The net interest margin stood at 3.17%.

Gross non-performing assets (NPAs) and net NPA of the bank stood at `3,361.23 crore and `1,817.32 crore, respectively. Gross NPA as a percentage stood at 3.14% and net NPA as a percentage stood at 1.72%. The provision coverage ratio, including technical write-offs, was at 64.20%, the bank said in a statement.

Speaking to reporters after the release of the earnings, executive director and chief financial officer Ashutosh Khajuria said the lender has restructured loans worth Rs60 crore on account of Kerala floods. The bank had restructured loans worth `35 crore in the second quarter of the current fiscal.

“The entire exposure to the Kerala floods has been provided for and has been treated as non-performing assets (NPAs),” said managing director and chief executive officer Shyam Srinivasan.
The private sector lender’s slippages rose to Rs 426 crore, a 3.65% increase year-on-year from Rs 411 crore.

Total deposits grew 22.8% year-on-year to Rs 1.23 lakh crore, from Rs 1 lakh crore, while net advances increased 24.25% year-on-year to reach `1,05,550.12 crore. CASA increased by 23.62% to `41,172 crore in the quarter under review.

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