Private sector lender Federal Bank Friday reported a 50 percent jump in its standalone profit after tax at Rs 460.26 crore in the quarter ended September 2021. The lender had earned a profit after tax of Rs 307.62 crore in the corresponding quarter of the previous fiscal.

According to a CNBC-TV18 poll, profits were expected to at Rs 419 crore, while the net interest income (NII) at Rs 1,477 crore.

#2QWithCNBCTV18 | Federal Bank reports profit slightly higher and NII in-line with estimates pic.twitter.com/OrZLmmBWDG

— CNBC-TV18 (@CNBCTV18Live) October 22, 2021

The bank's Managing Director and CEO Shyam Srinivasan said during the quarter all the financial parameters showed good performance. The bank, amidst the volatile environment, has delivered a very encouraging performance braving a lot of odds. We witnessed strong traction in NIM and pick up in NII on the back of good credit growth in certain segments. Strong recovery and upgrades helped in virtually no credit cost for the quarter, he said.

Net interest income (NII) grew by 7 percent to Rs 1,479.42 crore in Q2 FY22 from Rs 1,379.85 crore in the year-ago quarter. Net interest margin (NIM) stood at 3.20 percent as on September 30, 2021. Gross non-performing assets (GNPAs) stood 3.24 percent as against 2.84 percent. Net NPAs was at 1.12 percent compared to 0.99 percent in the year-ago quarter.

Provision Coverage Ratio (including technical write-offs) was 79.33 percent. Capital adequacy ratio (CRAR) of the bank, computed as per Basel III guidelines stood at 14.97 percent as at the end-September.

Advances grew 10 percent to Rs 137,313.37 crore from Rs 125,208.57 crore. Retail advances grew by 11.76 percent to Rs 44,264.37 crore. Gold loans registered a growth of 25.88 percent to reach Rs 15,976 crore and agri advances reached Rs 17,890 crore, registering a growth of 20.23 percent. Total deposits increased by 9.73 percent from Rs 156,747.39 crore to Rs 171,994.75 crore, the lender said in a release. CASA (Current Account Saving Account) growth of 18 percent Y-o-Y led CASA ratio to reach an all-time high of 36 percent. This further strengthens the granularity of our deposit portfolio, Srinivasan said.

Inward remittances continue to be a strong forte for the lender with a market share of 20.54 percent, he said. The bank's scrip closed at Rs 104.05 apiece, up 7.77 percent on BSE.

(With inputs from PTI)

(Edited by : Priyanka Deshpande)

First Published:Oct 22, 2021 10:01 PM IST