Old private sector lender Federal Bank has posted a 6 per cent increase in net profit in the July to September period at Rs 240 crore helped by non-interest income.
The net profit was at Rs 226 crore in the year-ago period.
The profit was limited due to higher provisions, which increased to Rs 169 crore, up 50 per cent, from Rs 113 crore in the corresponding quarter a year ago.
The Kerala-based bank’s net interest income (NII) or the difference between interest earned and expended, grew 10.5 per cent to Rs 606 crore from Rs 548 crore in the second quarter last year.
Non-interest income jumped 37 per cent to Rs 196 crore in Q2FY15 against Rs 143 crore in Q2FY14.
Net Interest Margin (NIM) improved marginally to 3.35 per cent as on September end this year from 3.3 per cent as on September end in the previous year.
As on September end 2014, net advances increased 15 per cent year-on-year to Rs 48,466 crore from Rs 42,220 crore as on September 30, 2013. Total deposits increased 14 per cent to Rs 64,564 crore from Rs 56,794 crore.
Gross non-performing assets (NPAs) improved to 2.10 per cent of total advances from 3.39 per cent.Net NPAs also lessened to 0.66 per cent from 0.98 per cent.
Post results, shares of Federal Bank were trading down 3.57 per cent at Rs 133.75 per share on the Bombay Stock Exchange.