Federal Bank Q1 net profit up 46% to Rs 384 crore as bad loans ease

Private sector lender Federal Bank on Tuesday registered a 46 per cent increase in its net profit at Rs 384.21 crore for first quarter of the current financial year as bad loans eased.

The bank's net profit in the corresponding three months to June in 2018-19 stood at Rs 262.71 crore.

Total income of the bank increased to Rs 3,620.82 crore for the quarter, against Rs 2,938.24 crore in the year-ago period, the bank said in a regulatory filing.

It earned Rs 3,229.30 crore as interest income in the June quarter of this financial year, up from Rs 2,667.38 crore a year ago.

During the quarter, the asset quality of bank improved with gross non-performing assets (NPAs) declining to 2.99 per cent from 3 per cent as on June 30, 2018. Likewise, net NPAs also declined to 1.49 per cent as compared to 1.72 per cent in the same quarter a year ago.

As a result, provisioning for bad loans and contingencies declined to Rs 192.04 crore for April-June quarter from Rs 199.15 crore a year ago.