Private sector Federal Bank reported a 32.07 per cent increase in its net profit in the third quarter of the fiscal led by strong revenue and stable asset quality.

The bank’s net profit rose to ₹440.64 crore in the quarter ended December 31, 2019 as against ₹333.63 crore in the corresponding quarter last fiscal.

“The bank continues to grow its retail franchise with strong momentum in personal loans, home loans and auto loans. The gold loan segment has also shown significant growth. Business Banking segment, part of the SME book, continues to show a steady growth,” Federal Bank said in a statement on Monday, adding that it has adopted a cautious approach in wholesale lending owing to the volatile environment prevailing in the market.

For the quarter under review, its total income grew by 13.3 per cent to ₹3,738.22 crore (₹3,299.96 crore).

Of this, net interest income rose by 7.2 per cent to ₹1,154.9 crore (₹1,077.3 crore). Net interest margin stood at 3 per cent for the quarter.

Other income grew 18 per cent to ₹407.86 crore in the October to December 2019 quarter.

The bank’s provisions declined to ₹160.86 crore in the third quarter of this fiscal from ₹190.12 crore in the same period last fiscal.

Gross non-performing assets remained contained at 2.99 per cent of gross advances as on December 31, 2019 as against 3.14 per cent a year ago. Net NPAs stood at 1.63 per cent of net advances at the end of the last quarter as against 1.72 per cent on December 31, 2018.

In absolute terms, gross NPA and net NPA at the end of the third quarter stood at ₹3,618.69 crore and ₹ 1,941.01 crore respectively, as compared to ₹3,361.23 crore and ₹1,817.29 crore in the same period last fiscal.

The quarter also saw the bank achieving the landmark figure of one crore customers. It has 1,255 branches and 1,965 ATM and recycler as on December 31, 2019.

The bank’s scrip closed at ₹93.80 apiece on BSE, which was 2.35 per cent higher than its previous close.

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