Federal Bank reports Q3 operating profit at Rs 963 crore
Jan 20, 2021
Mumbai (Maharashtra) [India], January 20 : Private sector lender Federal Bank said on Wednesday its operating profit moved up to Rs 963 crore during the quarter ended December as against Rs 744 crore during Q3 FY20.
However, the net profit came down to Rs 404 crore from Rs 441 crore primarily on account of increased provisions.
The bank earned net interest income of Rs 1,437 crore in Q3 FY21 as against Rs 1,155 crore for the same quarter last year. The net interest margin stood at 3.22 per cent, up 22 basis points.
Total business grew 8.85 per cent year-on-year from Rs 2.63 lakh crore on December 31, 2019 to Rs 2.87 lakh crore on December 31, 2020.
While total deposits reached Rs 1.61 lakh crore from Rs 1.44 lakh crore, net advances touched Rs 1.25 lakh crore.
Gross non-performing assets (NPAs) and net NPAs at the end of quarter stood at Rs 3,470 crore and Rs 757 crore respectively. Gross NPA as a percentage improved from 2.99 per cent to 2.71 per cent while net NPA improved from 1.63 per cent to 0.6 per cent.
Provision coverage ratio improved substantially from 45.3 per cent to 77.1 per cent.
Net worth of the bank increased to Rs 15,645 crore from Rs 14,211 crore as on December 31, 2019. Capital adequacy ratio computed as per Basel III guidelines stood at 14.31 per cent at the end of Q3 FY21.
Managing Director and CEO Shyam Srinivasan said the bank crossed two key milestones during the quarter. The first one being the Rs 1,000 crore debit card spends in a month, and the second one being Rs 1 lakh crore personal inward remittances in a calendar year.
"The bank continues its strong operating momentum despite external turbulences. This has helped strengthen its balance sheet further," he said.
