Earnings: Federal Bank Q3 profit rises 15% on higher other income

Mumbai: Private sector lender Federal Bank today reported 15 percent jump in net profit at Rs 265 crore for October-December period on the back of growth in retail, SME portfolio and improvement in other income. [caption id=“attachment_2048431” align=“alignleft” width=“380”]  Reuters[/caption]The bank had reported a profit of Rs 230 crore in the same quarter last year. “The quarter was stable for us and we reported a far good set of numbers. There was a significant growth in our fee income,” bank’s Managing Director Shyam Srinivasan told reporters here today. Other income grew 41 percent to Rs 220 crore from Rs 156 crore in the year-ago period. Net interest income grew by 7.62 percent to Rs 587 crore from Rs 546 crore. The gross NPA improved to 2.19 percent from 2.83 per cent, while net NPA stood at 0.69 percent from 0.86 percent in the year-ago quarter. Provision coverage ratio (PCR) including technically written-off assets of the bank stood at 84.96 per cent during the quarter. The bank restructured Rs 40 crore of loans during the quarter. Recovery stood at Rs 56 crore, with upgradation at Rs 81 crore. It wrote-off Rs 62 crore of loans during the quarter. The net interest margin stood at 3.20 percent and the bank sees its NIM in 3.25-3.28 percent range by March end. Advances increased by 15.34 percent to Rs 480.25 crore. Its retail advances grew 15.34 percent to Rs 15,689 crore from Rs 13,603 crore. SME advances of the bank were up 17.65 percent, from Rs 10,190 crore to Rs 11,988 crore. Total deposits increased by 13.53 percent to Rs 65,550 crore. The bank continued to build on its strong NRI franchise, posting a growth of 27.84 per cent in NRE deposits, which stood at Rs 22,344 crore as on 31 December. “We see the fourth quarter and beyond with optimism and will see the trend to continue and it would be even better,” Srinivasan said. PTI