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Federal Bank Q2 profit jumps 51% to Rs 425 crore, NII up 12%

Federal Bank Q2 results: The bank's consolidated net interest income (NII) grew by 12.42 per cent year-on-year to Rs 1,182.53 crore in July-September quarter of FY20 as compared to Rs 1,051.84 crore in Q2FY19

twitter-logo BusinessToday.In   New Delhi     Last Updated: October 16, 2019  | 14:20 IST
Federal Bank Q2 profit jumps 51% to Rs 425 crore, NII up 12%
Federal Bank Q2 results: The total income of the bank increased to Rs 3,748.44 crore during Q2FY20

Private lender Federal Bank on Wednesday reported a 51.58 per cent year-on-year (YoY) growth in consolidated net profit at Rs 425.34 crore during the second quarter ended September 30, 2019, helped by higher interest income.

"The private sector lender posted standalone net profit of Rs 280.61 crore in the same quarter last year," Federal Bank said in a filing to the Bombay Stock Exchange.

The bank's consolidated net interest income (NII), the difference between interest earned and interest expended, grew by 12.42 per cent year-on-year to Rs 1,182.53 crore in July-September quarter of FY20 as compared to Rs 1,051.84 crore in Q2FY19.

The other income (non-interest income) rose by 27.43 per cent to Rs 411.69 crore against Rs 322.96 crore in the same period last year.

The total income of the bank increased to Rs 3,748.44 crore during the September quarter of 2019-20, as compared to Rs 3,135.97 crore in the same period of 2018-19.

Also Read: IndusInd Bank Q2 profit jumps 52% to Rs 1,401 crore, asset quality declines

The provisions and contingencies of the bank declined to Rs 253.43 crore from Rs 285.60 crore in the year ago period. The provisions stood at Rs 193.32 crore during quarter ended June 2019.

Federal Bank's asset quality improved during the September quarter, with gross non-performing assets (NPAs) ratio - bad loans as a percentage of gross advances - falling marginally to 3.06 per cent versus 3.10 per cent in the year ago quarter. Net NPA slips to 1.60 per cent during September quarter as compared to 1.78 per cent in the corresponding quarter last year.

Also Read: Karnataka Bank Q2 profit slips 5.3% to Rs 106 crore, asset quality declines

The bank's absolute gross NPA decreased to Rs 3,653.17 crore in Q2FY20 against Rs 3,202.99 crore in Q2FY19 and Rs 3,433.75 crore in Q1FY20.

Following the Q2 results, Federal Bank shares were trading at Rs 80.65 apiece, down 4.56 per cent, as compared to previous close on the Bombay Stock Exchange.

Edited by Chitranjan Kumar

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