Federal Bank's standalone net profit rises 36% to Rs 954 crore in Q2

Private sector lender Federal Bank on Monday reported a 35.54 per cent jump in standalone net profit for the second quarter of this fiscal at Rs 953.82 crore, helped by rise in net interest income.

The south-based lender had posted a net profit of Rs 703.71 crore in the year-ago period.

Total income of the bank during the July-September quarter of 2023-24, rose to Rs 6,185.70 crore from Rs 4,630.30 crore in the same period of the previous year, Federal Bank said in a regulatory filing.

The net interest income of the bank registered a growth of 17 per cent to Rs 2,056.42 crore, as compared to Rs 1,761.83 crore in the same period a year ago.

On the asset quality front, the lender reported an improvement as the gross non-performing assets (NPAs or bad loans) fell to 2.26 per cent of the gross advances as of end-September 2023, from 2.46 per cent by end of second quarter of previous financial year.

The net NPAs fell to 0.64 per cent in the quarter under review, from 0.78 per cent in the same quarter a year ago.

Provisions for bad loans and contingencies for September 2023 quarter came down to Rs 44 crore, as against Rs 268 crore parked aside in the year-ago period.

Net worth of the bank increased from Rs 19,617.82 crore to Rs 26,032.07 crore as on September 30, 2023.

Capital Adequacy Ratio (CRAR) of the bank, computed as per Basel III guidelines stood at 15.50 per cent as at the end of the quarter.