Federal Bank Q3 net profit rises 29%, asset quality improves
Premium- Shares of Federal Bank were trading over 2% higher at ₹93 apiece on the BSE in Tuesday's afternoon deals
For the quarter ending December 2021, Federal Bank reported a 29% rise in its standalone net profit at ₹521.7 crore as compared to ₹404 crore in the same quarter last rise. Shares of Federal Bank were trading over 2% higher at ₹93 apiece on the BSE in Tuesday's afternoon deals.
The lender's net income interest (NII), which is the difference between interest earned and interest expended, grew over 7% to ₹1,539 crore from ₹1,437 crore year-on-year (YoY). The bank reported net interest margin (NIM) at 3.27% during the December ending quarter.
Its asset quality improved as gross NPA for the third quarter stood at 3.06% from 3.24% quarter-on-quarter (QoQ). Its net NPA was at 1.05% versus 1.12% in the previous quarter. Provisions (other than tax) and contingencies fell to ₹214 crore in Q3 as compared to ₹292 crore in Q2 and ₹414 crore in the year-ago period.
Federal Bank's capital adequacy ratio (under Basel-III) stood at 14.37% from 14.97% (QoQ) and 14.31% (YoY).
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“The bank’s capital and liquidity position is strong and would continue to be the focus area for the Bank during this period. The extent to which the Covid-19 pandemic will continue to impact the bank's results will depend on the future developments related to the situation, as well as the outcomes of the actions taken to contain the same," Federal Banks said in an exchange filing today.
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