Money & Banking

Federal Bank Q1 profit down 8.4%

Our Bureau Mumbai | Updated on July 23, 2021

Federal bank’s total income grew by 1.9 per cent to ₹4,005.86 crore

Private sector lender Federal Bank reported an 8.4 per cent drop in net profit for the quarter ended June 30, 2021 at ₹367.29 crore. Its net profit was ₹400.77 crore in the first quarter of last fiscal.

The bank’s total income grew by 1.9 per cent to ₹4,005.86 crore in the April- June 2021 quarter from ₹3,932.52 crore a year ago.

Net interest income grew by 9.4 per cent to ₹1,418.43 crore in the first quarter this fiscal against ₹1,296.44 crore a year ago.

Other income surged by 33.1 per cent to ₹650.15 crore for the quarter under review.

Provisions increased by 62.6 per cent to ₹641.83 crore in the first quarter this fiscal as against ₹394.62 crore a year ago.

Gross non performing assets also rose to ₹4,649.33 crore or 3.5 per cent of gross advances as on June 30, 2021 versus 2.96 per cent a year ago. Net NPA levels were stable at 1.23 per cent at the end of the first quarter this fiscal versus 1.22 per cent as on June 30, 2020.

Federal Bank said 13 borrower accounts involving ₹600.67 crore were given modifications under the Resolution Framework 2.0.

In a separate stock exchange filing, Federal Bank said its board of directors at the meeting on Friday also approved allotment of 10.48 crore equity shares at the issue price of ₹87.39 per share to International Finance Corporation, IFC Financial Institutions Growth Fund and IFC Emerging Asia Fund.

Published on July 23, 2021

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