Federal Bank net rises 12.5%

Kochi-based private sector lender Federal Bank recorded a net profit of Rs 215.10 crore for the quarter ended September, a rise of 12.5 per cent compared to the year-ago period. The bank's total income rose 12.14 per cent to Rs 1,665.04 crore.

Net advances stood at Rs 36,299 crore, an eight per cent annual rise, while the retail and small& medium sector books grew 18 per cent and 15 per cent, respectively. Total deposits rose five per cent to Rs 49,518 crore. The bank's non-resident external deposits rose 62 per cent to Rs 10,748 crore.

The bank's low-cost current account and savings account deposits ratio improved by 276 basis points to 28.71 per cent of total deposits and the net interest margin, a key indicator of the bank's profitability, stood at a healthy 3.58 per cent

Gross non-performing assets (NPAs) of the bank rose 3.83 per cent, compared with 3.61 per cent a year earlier, while net NPAs rose to 0.68 per cent, compared with 0.58 per cent in the year-ago period. In a statement, the bank said it would focus on housing & gold loans, advances to small and medium enterprises and low-cost deposits. It added it would expand its retail business extensively.