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

Federal Bank on Friday reported an 8.4% fall in its net profit to Rs 367.29 crore for the first quarter ended June 30, 2021. 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, the net profit was down 23.1%, 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% of the gross advances by the end of June 2021, from 2.96%as of June 2020.

Net NPAs or bad loans, however, remained stable at 1.23% as against 1.22% 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 private sector lender said its board has 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).