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Federal Bank has registered a 25 per cent increase in its net profit at Rs 262.71 crore in the first quarter of the current fiscal despite rise in bad loans. Net profit in the corresponding three months to June in 2017-18 stood at Rs 210.15 crore.
According to a regulatory filing, total income increased to Rs 2,938.24 crore during the quarter from Rs 2,653.19 crore in the year-ago period. Interest income rose to Rs 2,667.38 crore from Rs 2,324.09 crore.
During the quarter, the asset quality deteriorated with gross non-performing assets (NPAs) rising to 3.42 per cent from 2.42 per cent as on June 30, 2017.
Likewise, net NPAs also increased to 1.72 per cent (1.39 per cent). However, provisioning for bad loans and contingencies declined to Rs 199.15 crore in April-June quarter from Rs 236.44 crore a year ago.
“The bank has made a provision for NPAs as stipulated under RBI norms. Further, provision for standard assets, including requirements for exposures to entities with unhedged foreign currency exposures and provision for restructured advances has been made as per RBI guidelines,” it said.
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