Federal Bank's net profit falls 8.4% to Rs 367.29 crore in June quarter

 

The bank had posted a net profit of Rs 400.77 crore in the corresponding quarter of the previous financial year.

Private sector lender Federal Bank on Friday reported an 8.4 percent fall in its net profit to Rs 367.29 crore for the first quarter ended June 30, 2021, as provisioning for bad loans soared.

The bank had posted a net profit of Rs 400.77 crore in the corresponding quarter of the previous financial year.

On a sequential basis also, the net profit was down 23.1 percent, from Rs 477.81 crore in the quarter ended March 2021.

However, its total income during April-June 2021 was higher at Rs 4,005.86 crore as against Rs 3,932.52 crore in the year-ago period, Federal Bank said in a regulatory filing.

The bank’s asset quality showed deterioration as the gross non-performing assets (NPAs) rose to 3.50 percent of the gross advances by the end of June 2021, from 2.96 percent as of June 2020.

Net NPAs or bad loans, however, remained stable at 1.23 percent as against 1.22 percent a year ago.

Provisioning for bad loans and contingencies for the June 2021 quarter spiked substantially to Rs 641.83 crore, from Rs 394.62 crore in year-ago period.

The bank said its board of directors also approved allotment of 10,48,46,394 equity shares at an issue price of Rs 87.39 apiece to International Finance Corporation (IFC) and its related entities for Rs 916.25 crore.

It has allotted 31,453,918 shares to IFC; and 36,696,238 each to IFC Financial Institutions Growth Fund, LP (FIG) and IFC Emerging Asia Fund, LP (EAF).

With the allotment of these shares, the bank’s paid-up equity share capital stands increased from the current level of 199,62,83,783 equity shares to 210,11,30,132 equity shares of Rs 2 each, Federal Bank said.

The bank’s shares on Friday traded 1.36 percent higher at Rs 85.40 apiece on the BSE.