Mumbai: Federal Bank Ltd on Monday said its third quarter net profit rose 32% on the back of higher other income and lower provision.
The bank posted a net profit ?440.64 crore for the three months ended 31 December compared to ?333.63 crore in the year-ago period. Profit was higher than ?412.7 crore estimated by a Bloomberg poll of 15 analysts.
Net interest income, or the difference between interest earned on loans and that paid on deposits, increased 7.21% to ?1,154.93 crore from ?1,077.29 crore in the corresponding period last year.
Other income, which includes core fee income, rose 18.03% to ?407.86 crore in the three months from ?345.55 crore a year ago.
Gross non-performing assets (NPAs), as a percentage of total advances, were at 2.99% in the December quarter compared with 3.07% in the September quarter and 3.14% in the year-ago December quarter.
Provisions during the quarter decreased 15.39% to ?160.86 crore as against ?190.12 crore in the year-ago quarter. In the July-September quarter, the bank had set aside ?251.77 crore in provisions.
Post-provision, the net NPA ratio was at 1.63% against 1.59% in the July-September quarter and 1.72% in the year-ago quarter.
At 2.15 pm, shares of the bank lost 2.18% to ?89.65 apiece, while the benchmark Sensex index lost 0.74% to 41636.16 points
News Source:- livemint