Federal Bank Q4 net down 43% at Rs 1.45 bn on higher provisions, bad loans

Bank has made accelerated recognition of sensitive assets and treated them as NPAs and made provisions for it

Private sector lender Federal Bank’s net profit for the fourth quarter ended March 2018 (Q4Fy18) fell by 43.5 per cent to Rs 1.44 billion on higher provisioning for bad loans.

It had posted a net profit of Rs 2.56 billion for quarter ended March 2017 (Q4Fy17).

Net profit for 2017-18 was up at Rs 8.78 billion from Rs 8.3 billion in 2016-17.

Shyam Srinivasan, its managing director and chief executive, said the revised framework for the resolution of stressed assets (February 12, 2018) has impacted out bottom-line figure (Q4Fy18). 

Bank has made accelerated recognition of sensitive assets and treated them