Private sector Federal Bank today reported a jump of over 31 per cent in net profit to Rs 263.70 crore for the September quarter of the current fiscal as it trimmed bad loans.
The bank's net profit in the corresponding July-September period of 2016-17 was Rs 201.24 crore.
Its total income increased 14.1 per cent to Rs 2,666.82 crore during the quarter, from Rs 2,338.32 crore a year ago, as per the bank's regulatory filing.
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Bad loans or non-performing assets (NPAs) of the bank came down during the quarter under review. Its gross NPAs as a percentage of gross advances at end of September 2017 stood at 2.39 per cent, as against 2.78 per cent a year ago.
Net NPAs were trimmed to 1.32 per cent of the net advances disbursed by the bank by the end of second quarter of 2017-18, down from 1.61 per cent over the same period of the previous fiscal.
However, there was a slight uptick in bank's provisions for bad loans and contingencies at Rs 176.77 crore for July- September 2017-18, compared with Rs 168.40 crore it put aside in the year ago quarter.
The bank said it has made provision for NPAs as stipulated under the Reserve Bank 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 added.
The Federal Bank stock jumped 5.67 per cent to Rs 123.85 on BSE post the earnings announcement.
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