federal bank on Friday reported a standalone net profit of ₹460.26 crore for the second quarter ended September, almost 50% higher than ₹370.6 crore in the same quarter of the previous financial year. The lender’s net interest income, the difference between interest earned and interest spent, increased by about 7%. ₹1,479.4 crore from ₹1,380 crore year-on-year (YoY).
The asset quality of Federal Bank improved on a sequential basis as gross NPAs stood at 3.24% as against 3.50% in the previous quarter. Its net NPAs stood at 1.12% from 1.23% quarter-on-quarter (QoQ). However, during the year-ago quarter, the Gross NPAs stood at 2.84% while the Net NPAs stood at 0.99%.
Provisions (other than tax) and contingencies declined ₹245 crore as against ₹543 crore in the previous quarter and ₹532 crore in the year-ago quarter. Meanwhile, its tax expense was reported during Q2FY22 ₹159 cr vs ₹106.8 crore from the corresponding quarter of the previous financial year.
Federal Bank further explained that “Due to the prevailing uncertainties due to the COVID-19 pandemic around the world and in India, the extent to which this will affect the Bank’s operations and future financial position will depend on various aspects, including including the action taken for its effect and other regulatory measures.”
The bank’s capital and liquidity position is strong and will continue to be the focus area for the bank during this period. It added that the extent to which the COVID-19 pandemic continues to affect the Bank’s results will depend on future developments relating to the situation, as well as the consequences of actions taken to contain it.
Federal Bank shares were trading 2% lower ₹94 per share on BSE in Friday afternoon deals.
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