Private sector lender Federal Bank today registered a 25 per cent increase in its net profit at Rs 262.71 crore for first quarter of the current fiscal despite rise in bad loans.
The bank's net profit in the corresponding three months to June in 2017-18 stood at Rs 210.15 crore.
Total income of the bank increased to Rs 2,938.24 crore for the quarter, against Rs 2,653.19 crore in the year ago period, the bank said in a regulatory filing.
It earned Rs 2,667.38 crore as interest income in the June quarter of this fiscal, up from Rs 2,324.09 crore a year ago.
During the quarter, the asset quality of bank deteriorated with gross non-performing assets (NPAs) rising to 3.42 per cent from 2.42 per cent as on June 30, 2017.
Likewise, net NPAs also increased to 1.72 per cent as compared to 1.39 per cent in the same quarter a year ago.
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However, provisioning for bad loans and contingencies declined to Rs 199.15 crore for April-June quarter from Rs 236.44 crore a year ago.
"The bank has made provision for NPAs as stipulated under RBI norms. Further, provision for standard assets including requirements for exposures to entities with unhedged foreign currency exposures and provision for restructured advances have been made as per RBI guidelines," it said.