Federal Bank net down 44%

Total income up by 13% to Rs 1,869 cr

rivate sector lender Federal Bank posted a 44.5 per cent drop in net profit for the first quarter ended June at Rs 105.66 crore on sharp rise in provisions for bad loans and tax. Its net profit in Q1 of 2012-13 was Rs 190.35 crore.

Its stock closed higher by 0.5 per cent to Rs 381.45 crore on Bombay Stock Exchange.

The bank’s total income for the first quarter went up by 12.52 per cent to 'Rs 1,869.05 cr from Rs 1,661.04 crore in the same quarter in 2012-13. Net interest income recorded an increase of 3.66 per cent to reach Rs 509.61 crore, the Kochi-based bank said in a statement.

The provisions for bad loan and contingencies shot up to Rs 245.10 crore in Q1, from Rs 62.78 crore in April-June 2012.

Its net interest margin was 3.13 per cent in Q1. The gross non-performing assets (NPAs) 3.51 per cent at end of June 2013.

The capital adequacy ratio was at 14.27 per cent (Basel-III).