Federal Bank net profit surges 50%, asset quality improves : Rashtra News
Gross non-performing assets (NPAs) as a percentage of gross advances are seen at 3.24%, compared to 2.84% in the year-ago period and 3.50% in the preceding quarter. The net NPA ratio stood at 1.12%, against 0.99% in Q2 of FY21 and 1.23% in Q1FY22.
Federal Bank on Friday reported a 49.62% year-on-year increase in its standalone net profit for the second quarter ended September to Rs 460.26 crore, mostly due to lower provisioning and higher income. The lender had reported a net profit of Rs 307.62 crore in the year-ago period and Rs 367.29 crore in Q1FY22.
Fresh slippages in the quarter under review was contained to Rs 320 crore along with recoveries and upgrade of Rs 421 crore, leading to an improvement in the asset quality, bank officials said.
Gross non-performing assets (NPAs) as a percentage of gross advances are seen at 3.24%, compared to 2.84% in the year-ago period and 3.50% in the preceding quarter. The net NPA ratio stood at 1.12%, against 0.99% in Q2 of FY21 and 1.23% in Q1FY22.
Provisions and contingencies were lower at Rs 245.33 crore, compared with Rs 532.09 crore in the year-ago period. The provision coverage ratio (including technical write-offs) is reported at 79.33%.
Shyam Srinivasan, MD & CEO, said the bank has delivered a very encouraging performance braving a lot of odds. “We witnessed strong traction in NIM and pick-up in NII on the back of a good credit growth in certain segments. Strong recovery and upgrades helped in virtually no credit cost for the quarter. CASA growth of 18% YoY led the CASA ratio to reach to an all-time high of 36%. This further strengthens the granularity of our deposit portfolio. Inward remittances continue to be a strong forte for the bank with a market share of 20.54%,” he said.
Srinivasan said the digital story of the bank continues to prosper with fintech partnerships progressing well and contributing to more than 50% of the new accounts booked.
The bank earned net interest income of Rs 1,479.42 crore for the quarter ended September 30, 2021.
The capital adequacy ratio computed as per Basel III guidelines stood at 14.97% at the end of the quarter.
Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.
Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.
( News Source :Except for the headline, this story has not been edited by Rashtra News staff and is published from a www.financialexpress.com feed.)
Related searches :
