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Kerala-based Federal Bank has posted a 31 per cent growth in its net profit at ₹264 crore in the second quarter of this fiscal (FY18), compared with ₹201.24 crore in the corresponding year-ago period.
The total business registered 18 per cent growth to ₹1,77,856.63 crore as on September 30, backed by a 24.54 per cent growth in gross advances.
The total advances grew to ₹81,496.54 crore from ₹65,439.31 crore.
Total deposits increased to ₹97,210.75 crore as on September 30, from ₹86,299.10 crore, registering a growth of 13 per cent.
Shyam Srinivasan, MD and CEO, told BusinessLine that operating profit has been growing consistently and this is the seventh consecutive quarter that the bank has registered record operating profit.
The bank has been able to control slippages and thus improve the quality of the portfolio.
As a result, the provisioning was lower, leading to a considerable increase in net profit, he added. On economic recovery, Srinivasan said: “We are hopeful that the second half will witness quite a large credit growth and an overall improvement in the economic situation.
The bank is well positioned to get a larger share of that growth.”
NRE deposits registered 17.86 per cent growth to ₹38,255.82 crore from ₹32,459.20 crore. And CASA (current account, savings accounts) deposits grew 19.52 per cent to reach ₹32,015.57 crore.
On the assets side, retail advances clocked a growth of 16.51 per cent and SME advances, 18.02 per cent to ₹17,650.78 crore as on September 30 from ₹14,955.28 crore.
Housing loans rose 21 per cent.
Net interest margin stood at 3.31 per cent.
Gross non-performing assets (GNPAs) and net NPAs stood at 2.39 per cent and 1.32 per cent of advances, respectively.
The provision coverage ratio (including technical write-offs) came in at 70.32 per cent.
The capital adequacy ratio computed in accordance with Basel-III guidelines stood at 14.63 per cent at the end of the quarter.
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