Federal Bank said that its profit has decreased on the basis of the previous quarter. Its net profit in the January-March 2021 quarter was Rs 477.81 crore. In comparison, the profit for the June quarter is 23.1 percent lower.
The stock closed at Rs 85.40.
Federal Bank results: Private sector Federal Bank said on Friday that its total profit declined by 8.4 percent to Rs 367.29 crore in the April-June quarter of the current financial year. During this, the bank had to increase the provisioning for bad loans for blocked loan accounts, which reduced its profit. With this, the total profit of the bank in the corresponding period of the previous financial year was Rs 400.77 crore.
Federal Bank said that its profit has decreased on the basis of the previous quarter. Its net profit in the January-March 2021 quarter was Rs 477.81 crore. In comparison, the profit for the June quarter is 23.1 percent lower. The bank’s income during the April-June, 2021 quarter, however, increased to Rs 4,005.86 crore as against Rs 3,932.52 crore in the same period last year.
NPA rises to 3.50 per cent
Due to deterioration in the asset quality of the bank, its gross non-performing assets (NPAs) increased to 3.50 percent in the June, 2021 quarter. Whereas in the same quarter of this last financial year, the gross NPA was 2.96 percent. However, net NPAs or blocked loans remained almost constant at 1.23 per cent. A year ago, the net NPAs were equal to 1.22 per cent of the debt. The bank’s loss provision for bad loans increased to Rs 641.83 crore in the June quarter of the current financial year from Rs 394.62 crore in the corresponding quarter of the previous financial year.
Today the stock rose 1.36 percent
The bank said that the board of directors also approved the allotment of 10,48,46,394 equity shares to International Finance Corporation (IFC) and its affiliated entities for Rs 916.25 crore at an issue price of Rs 87.39 per share. The bank’s stock closed at Rs 85.40 per share with a gain of 1.36 per cent on the NSE on Friday.
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