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Federal Bank Q1 profit grows 46% to Rs 384 cr, asset quality weakens

Gross slippages at Rs 415 crore for the quarter were higher compared to Rs 256 crore in March quarter, Shyam Srinivasan, MD & CEO said while addressing press conference.

July 16, 2019 / 02:33 PM IST
 
 
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Federal Bank's June quarter profit grew by 46.2 percent year-on-year to Rs 384.2 crore despite provisions remained elevated and asset quality weakened. Higher other income and operating profit boosted earnings.

Profit in the same quarter last year was Rs 262.7 crore.

Net interest income, the difference between interest earned and interest expended, increased 17.8 percent YoY to Rs 1,154.2 crore.

Numbers were better than analyst estimates. A CNBC-TV18 poll estimates for profit were Rs 358.5 crore and NII Rs 1,135.5 crore for the quarter.

Gross non-performing assets as a percentage of gross advances increased to 2.99 percent, from 2.92 percent in the previous quarter and net NPAs, too, were higher at 1.49 percent against 1.48 percent sequentially.

Gross slippages at Rs 415 crore for the quarter were higher compared to Rs 256 crore in March quarter, Shyam Srinivasan, MD & CEO said while addressing a press conference.

"Long gestation and capital intensive sectors like infra, roads are seeing challenges. We are being watchful of sectors where there are signs of stress," he added.

The private sector lender reported provisions for bad loans at Rs 192 crore in Q1, against Rs 177.8 crore in March quarter and Rs 199.1 crore in June quarter 2018.

Other income (non-interest income) in Q1 shot up 44.5 percent to Rs 391.5 crore and operating profit grew 30 percent YoY to Rs 783 crore.

The stock was quoting at Rs 103.35, down Rs 3.25, or 3.05 percent on the BSE at 1351 hours IST.

Moneycontrol News
first published: Jul 16, 2019 02:33 pm

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