Moneycontrol Bureau
Private sector lender Federal Bank's October-December quarter earnings disappointed street on Tuesday with net profit falling 38.5 percent year-on-year to Rs 162.7 crore. It was impacted by slow growth in net interest income and sharp fall in other income & operating profit.
Net interest income, the difference between interest earned and interest expended, increased 3 percent to Rs 605.2 crore in quarter ended December 2015 compared to Rs 587.2 crore in same quarter last fiscal, which was on expected line.
Profit degrowth was higher compared to a CNBC-TV18 poll that had expected 27 percent fall.
Provisions remained at elevated levels, rising 14 percent quarter-on-quarter to Rs 75.1 crore in Q3FY16. There was a provision writeback of Rs 0.82 crore in corresponding quarter of last fiscal.
Other income (non-interest income) slipped 16.6 percent to Rs 183.3 crore and operating profit dropped 18 percent to Rs 325.5 crore compared to same quarter previous fiscal.
Asset quality deteriorated during the quarter with gross non-performing assets (NPA) as a percentage of gross advances increased to 3.15 percent compared to 2.90 percent in preceding quarter and 2.19 percent in a year-ago period. Net NPA rose 33 basis points sequentially (up 97 bps year-on-year) to 1.66 percent in quarter gone by.
Tax expenses declined 34.3 percent on yearly basis to Rs 87.65 crore in October-December quarter.
At 14:59 hours IST, the scrip of Federal Bank was quoting at Rs 47.95, down Rs 4.35, or 8.32 percent after hitting a fresh 52-week low of Rs 47.45 on the Bombay Stock Exchange post disappointing earnings.
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