MUMBAI: Sixth-largest private sector lender Federal Bank on Thursday reported a flat net income at Rs 906.3 crore in the March quarter as against Rs 903 crore in the year-ago period despite reporting better asset quality and robust interest income on the back of higher loan sales.
The Kochi-based bank said the reporting quarter saw its net interest growing 15% to Rs 2,195.11 crore, which is the highest ever it had booked so far. The bottom line was impacted by the outgo on account of the wage hike effected last November under which it had to make an additional Rs 162 crore provision towards pension arrears.
But the bank, whose total business crossed the Rs 4.6 lakh crore mark, said its gross NPAs printed in at 2.13% or Rs 4,528.87 crore and and net NPAs came in at 0.60% or Rs 1,255.33 crore.
While deposits increased 18.35% to Rs 2,52,534 crore, net advances increased 20.04% and the outgoing chief executive Shyam Srinivasan expects the credit growth to come in around 18 percent this fiscal.
Total business grew over 19% to Rs 4.62 lakh crore of which advances stood at Rs 2,09,403 crore, clipping at 20.04% Of the total advances, retail grew 20.07% to Rs 67,435.34 crore, business banking book grew 21.13% to Rs 17,072.58 crore, commercial banking grew 26.63% to Rs 21,486.65 crore, corporate advances grew 11.97% to reach Rs 73,596.09 crore.