Federal Bank's standalone net profit rises 4.3 pc to Rs 401 cr in Jun quarter

New Delhi, Jul 15 () Federal Bank on Wednesday reported a marginal 4.3 per cent rise in its standalone net profit to Rs 400.77 crore for the first quarter ended June.

The bank had posted a net profit of Rs 384.21 crore during the corresponding quarter of the previous financial year 2019-20.

Its total income during April-June 2020 increased to Rs 3,932.52 crore as compared with Rs 3,620.82 crore in the year-ago period, Federal Bank said in a regulatory filing.

The lender's interest income rose to Rs 3,444.15 crore, compared with Rs 3,229.30 crore a year ago. However, income from other sources jumped to Rs 488.37 crore in the June 2020 quarter, from Rs 391.52 crore.

Provisioning for bad loans and contingencies increased to Rs 394.62 crore, from Rs 192.04 crore a year ago.

Gross non-performing assets (NPAs) or bad loans, as proportion to gross advances, fell marginally to 2.96 per cent as on June 30, 2020, compared with 2.99 per cent by the end of June 2019.

In value terms, the gross NPAs stood at Rs 3,655.59 crore, against Rs 3,394.69 crore.

Net NPAs came down to 1.22 per cent (Rs 1,477.46 crore), from 1.49 per cent (Rs 1,672.82 crore).

Federal Bank said that in addition to the Reserve Bank of India (RBI)-mandated provisions due to COVID-19, the bank as a prudent measure made an additional provision in the June 2020 quarter.

"As a prudent measure, during the current quarter, the bank has made an additional provision of Rs 93 crore (Rs 63.03 crore during the quarter ended March 31, 2020) and a net writeback of Rs 17.81 crore, against the likely impact of the COVID-19 pandemic in respect of exposure of the bank to certain specified sectors based on the assessment of presently available information," it said.

The aggregate provision against the likely impact of COVID-19, including the RBI-mandated provision, stands at Rs 186.30 crore as on June 30, 2020, it added.

Shares of Federal Bank on Wednesday closed at Rs 49.85 on the BSE, down 2.45 per cent from the previous close. KPM HRS