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Private sector lender Federal Bank posted a 56.6 per cent rise in net profit at ₹416.70 crore in the second quarter of the fiscal, led by strong growth in income and lower bad loans. Its net profit was ₹266.04 crore in the same period a year ago.
For the July to September 2019 quarter, its total income grew by a robust 19.02 per cent at ₹3,675.15 crore, against ₹3,087.81 crore in the same period a year ago.
Net interest income
The bank earned a net interest income of ₹1,123.77 crore for the quarter ended September 30, which was a near 10 per cent increase from ₹1,022 crore a year ago. Net interest margin at 3.01 per cent, as on September 30, was slightly lower than the 3.1 per cent a year ago.
“This has been the highest-ever net profit,” said Shyam Srinivasan, Managing Director and CEO, Federal Bank.
The bank’s gross non-performing assets amounted to ₹3,612.11 crore at the end of the September quarter this fiscal, which, as a percentage of gross advances, stand was 3.07 per cent. This is marginally better than the 3.11 per cent it posted a year ago.
Provision coverage ratio (including technical write-offs) was 66.16 per cent. Taking advantage of the reduction in corporate tax rates, Federal Bank’s tax expense in the second quarter of the fiscal came down to ₹50 crore from ₹142.74 crore a year ago.
The bank’s scrip closed 2.78 per cent, lower at ₹82.15 apiece on the BSE on Wednesday.
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