Federal Bank, a private sector lender, reported a growth in net interest revenue that helped the company’s standalone net profit for the second quarter of this fiscal year by 35.54 per cent to Rs 953.82 crore. The southern-based institution reported a net profit of Rs 703.71 billion during the same time last year, on Monday.
According to Federal Bank, the bank’s total revenue from July to September 2023–24 quarters increased to Rs 6,185.70 crore from Rs 4,630.30 crore during the same quarter, previous year. In comparison to the same quarter last year, the bank’s net interest income increased by 17 per cent to Rs 2,056.42 crore from Rs 1,761.83 crore.
On the asset quality front, the lender reported an improvement, with gross non-performing assets (NPAs or bad loans) falling to 2.26 percent of gross advances as of end-September 2023, down from 2.46 percent at the end of the previous fiscal year’s second quarter.
Net NPAs declined to 0.64 percent in the current quarter, down from 0.78 percent in the previous quarter.
Provisions for bad loans and contingencies fell to Rs 44 crore in the September 2023 quarter, down from Rs 268 crore the previous year. As of September 30, 2023, the bank’s net value had climbed from Rs 19,617.82 crore to Rs 26,032.07 crore.
