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 1,155 crore a year ago. Net interest margin (NIM) expanded by 22 basis points year-on-year to 3.22 per cent.
Pro-forma gross non-performing assets were at 3.38 per cent, including assets not recognised as NPAs because of the Supreme Court stay. The pro-forma net NPAs were at 1.14 per cent.
Its total advances rose by six per cent to Rs 1.28 trillion in the 12 months ended December. Its deposits rose to Rs 1.61 trillion from Rs 1.44 trillion. Gold loans grew by 67 per cent YoY to cross Rs 14,000 crore at end of December.