Federal Bank net up 6.4%, as provisioning up

Private lender Federal Bank had a net profit of Rs 240 crore in the July-September quarter, a rise of 6.4 per cent from the Rs 226 crore in the same quarter last year.

An increase in other income and net interest income (NII) was offset by a rise in provisioning. The bank provided for Rs 45.7 crore as compared with a writeback of Rs 4 crore in the same period a year before.

NII grew 10.5 per cent to Rs 606 crore from Rs 548 crore in the year-ago period. Deposit growth was 13.7 per cent. Non-interest income rose 36.6 per cent to Rs 196 crore from Rs 143 crore a year before.

Net interest margin improved by five basis points (bps) to 3.35 bps per cent from 3.3 per cent in the same period last year.

Gross non-performing assets (NPAs), as a percentage of total advances, was 2.1 per cent as compared with 3.39 per cent in the corresponding period a year before. The net NPA ratio fell 32 bps to 0.66 per cent from 0.98 per cent in the quarter last year.

Fresh slippages were Rs 174 crore as compared to Rs 224 crore in the June quarter.