Private sector lender Federal Bank reported a 29.1 per cent jump in its net profit at ₹521.73 crore in the third quarter of the fiscal as against ₹404.1 crore a year ago.
For the quarter ended December 31, 2021, its net interest income grew by 7.1 per cent to ₹1,538.9 crore as against ₹1,437.04 crore in the same period last fiscal.
Net interest margin improved sequentially by seven basis points to 3.27 per cent as on December 31, 2021. Other income grew by 1.6 per cent y-o-y to ₹484.19 crore in the third quarter of the fiscal.
Provisions down by half
Provisions nearly halved by 48.3 per cent to ₹213.98 crore in the quarter from ₹414.16 crore a year ago. Its asset quality improved on a sequential basis.
Gross non-performing assets was 3.06 per cent of gross advances as on December 31, 2021, compared to 3.24 per cent as on September 30, 2021 and 2.71 per cent as on December 31, 2020.
Net NPA was 1.05 per cent at the end of the third quarter versus 1.12 per cent at the end of the second quarter and 0.6 per cent as on December 31, 2020.
Total business of the bank grew 10.1 per cent y-o-y to ₹3,16,174.33 crore as on December 31, 2021.
Net advances increased by 12.14 per cent on a y-o-y basis to ₹1,40,742.63 crore while total deposits grew by 8.5 per cent to ₹1,75,431.69 crore by the year end.
“The bank has delivered strong bottom line with key gains in net interest income, fee income and net interest margin,” said Shyam Srinivasan, Managing Director and CEO, Federal Bank.