Federal Bank Q1 profit down 36% to Rs 141 crore

Higher NPA provisioning impacts numbers; income up 9.3% to Rs 2,108 cr

KKerala-headquartered Federal Bank Ltd saw its first quarter profit fall  by 35.73 per cent to 141.39 crore as it made higher provisions for non-performing assets of a large customer.

Income grew by 9.3 per cent to Rs 2,107.9 crore in the June quarter. Federal Bank had reported profits of Rs 220.2 crore on an income of Rs 1928 crore in the corresponding period last year.

The bank had Rs 50 mark-to-market losses in the quarter, while making a provision of Rs 70 crore on a large account, said D Sampath, chief financial officer at Federal Bank. The bank’s NPA ratio had risen 2.59 percent, he said.

The company has seen credit offtake from corporate slow due to prevailing economic conditions, while retail customers transacted more during the period.