Federal Bank Q3 profit falls 8% to Rs 404 crore on higher provisioning

The bank earned net interest income of Rs 1,437 crore in Q3, against Rs 1,155 crore a year ago

Federal Bank’s net profit fell by eight per cent to Rs 404 crore in the quarter ended December of financial year 2020-21 (Q3FY21), primarily on account of increased provisions. Its stock was up 1.46 per cent at Rs 76.50 per share on BSE on Wednesday.

Shyam Srinivasan, its managing director and CEO, said net profit was impacted by significant step up in provisions, which more than doubled in Q3 to Rs 420.62 crore. The Provision Coverage Ratio (PCR) improved substantially to 77.1 per cent from 45.3 per cent.

The bank earned net interest income of Rs 1,437 crore in Q3, against Rs