Federal Bank posted a net profit of Rs 167 crore in the June quarter, beating estimates. The private lender's net interest income (NII), or the difference between interest received on advances and paid on deposits, jumped 15 per cent year-on-year to Rs 693 crore.
Analysts polled by NDTV Profit had estimated Federal Bank to post a net profit of Rs 156 crore and NII of Rs 680 crore in Q1. Federal Bank shares jumped over 5 per cent post earnings announcement.
Federal Bank's gross non-performing assets increased 5 per cent sequentially to Rs 1,747 crore in the June quarter, while net non-performing assets increased to 1.68 per cent against 1.64 per cent in March quarter. As a percentage of total advances, Federal Bank's gross NPA stood at 2.92 per cent against 2.84 per cent sequentially.
However, Federal Bank's provision for stressed loans in the June quarter was 43 per cent lower sequentially at Rs 168 crore, boosting hopes that asset quality might have stabilized.
Federal Bank shares closed 4.76 per cent higher at Rs 63.85 compared to 0.37 per cent gain in the broader Nifty.
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