While Federal Bank's provisions came down by 25% to Rs156.16 crore, its advances rose 19% to Rs38,042.90 crore driven by SMEs, corporate advances and retail segments apart from gold loans
Mumbai: Kochi-based old generation private sector lender Federal Bank has reported a 30.23% growth in the June quarter net profit at Rs190.35 crore up from Rs146.16 crore a year ago on the back of an improvement in the asset quality as well as higher advances, reports PTI.
While provisions came down by 25% to Rs156.16 crore in the reporting quarter from Rs207.89 crore a year ago, advances rose 19% to Rs38,042.90 crore from Rs31,971.61 crore driven by SMEs, corporate advances and retail segments apart from gold loans.
The RBI tightening on the pure-play gold loan companies had a positive impact on the bank as its gold loan books soared 99% to Rs4,256 crore during the reporting quarter.
Accordingly, its asset quality too improved with the gross NPA bettering to 3.60% from 3.94% and net NPA to 0.62% from 0.74%, the fourth largest private sector bank by network said in a statement.
Total income grew 22% to Rs1,661.04 crore while net interest margin (NIM) stood at 3.42% while capital adequacy ratio stood at 15.45% a tad down from 15.57%.
Provisions, including taxes cames down by 25% to Rs156.16 crore from Rs207.89 crore. Slippages in SME/agri sector came down to 0.83%.
Core fee income continues its consistent upward movement registering 16.02% growth, while other income rose 6.36% to reach Rs124.33 crore from Rs116.90 crore.
Deposits rose 17.75% to Rs50,558 crore from Rs42,935.62 crore, while advances rose 19% to Rs38,042.90 crore from Rs 31,971.61 crore and investments rose 23% from Rs15,703.15 to Rs19,313.48 crore, the lender said.