Federal Bank on Friday reported a 26 percent decline in its net profit at Rs 308 crore in the quarter ended September 2020, on account of higher provisions. The private sector lender had posted a net profit of Rs 417 crore during the July-September quarter a year ago.

Total income during the said period rose by 9 percent to Rs 3,997 crore as against Rs 3,675 crore in the same quarter of 2019-20, Federal Bank said in a regulatory filing.

Interest income grew 7 percent to Rs 3,488 crore from Rs 3,254 crore. Its gross non-performing assets (NPAs) fell to 2.84 percent of the gross advances by end of September 2020 as against 3.07 percent a year ago. In value terms, it stood at Rs 3,552.19 crore as against Rs 3,612.11 crore. Net NPAs came down to 0.99 per cent (Rs 1,218.14 crore) as against 1.59 percent (Rs 1,843.64 crore).

Bank’s provisions for bad loans and contingencies were raised to Rs 592.06 crore for the quarter ended September as against Rs 251.77 crore parked aside for the corresponding period a year ago. Federal Bank’s shares were trading 0.10 percent down at Rs 51.70 apiece on the BSE.