KOCHI: The Kerala’s largest lender, Federal Bank, whose assets grew by 16 per cent year on year to Rs1.86 lakh crore, reported a net profit of Rs400.77 crore for the quarter ending June 30, 2020, compared with Rs384.21 crore for the comparable quarter last year.
The consolidated profit after tax (PAT) of the bank for the said period was Rs409.50 crore.
The ‘treasury’ has come to the rescue of the bank that added Rs428.28 crore to the profit before tax (PBT) of the bank for the quarter under review, representing close to 80 per cent to the bottom line. The treasury operations generated just Rs95.50 crore for the same period last year.
The corporate portfolio, the worst performer for the bank during the said period, closed the quarter with Rs81.49 crore loss before tax, whereas the retail portfolio generated Rs192.99 profit before tax for the quarter under review.
Srinivasan, Managing Director & CEO, Federal Bank said the bank has delivered a very healthy outcome in arguably the toughest operating conditions in well over 100 years. He said the bank has been exemplar, braved all challenges and held the fort all along, which is encouraging.
“Overall an encouraging quarter, given the challenging environment, the performance truly motivates us to ensure sensible growth with abundant caution, Srinivasan added.
Encouragingly, the bank saw some bright spots during the quarter. Most importantly, the fresh slippages during the quarter declined to Rs184 crore compared with Rs415 crore a year ago.
Further, the net non-performing assets (NPA) fell to 1.22 per cent, lowest in last 20 quarters; the provision coverage ratio (PCR) strengthened to 58.54 per cent, the highest in last 20 quarters from 53.39 per cent, a quarter ago.
While the net interest income (NII) reached an all-time high of Rs1296 crore, the cost to income ratio at 47.76 per cent achieved during the quarter was the best in last 25 quarters.
