Federal Bank net down 7% on higher provisions

Old private sector lender Federal Bank’s net profit fell seven per cent to Rs 222 crore on the back of higher provisions towards bad loans and lower interest income.

The Kerala-based bank had reported a net profit of Rs 238 crore in the year-ago period.

Marginal fall

Net interest income (difference between interest earned and expended) during the quarter declined marginally by two per cent to Rs 480 crore compared with Rs 491 crore in the fourth quarter in FY12.

However, other income increased 23 per cent to Rs 197 crore in the fourth quarter in FY13 from Rs 161 crore in the corresponding period in FY12.

Provisions during the quarter increased nine per cent to Rs 148 crore compared with Rs 135 crore in March quarter last year.

Net profit for the year ended March 2013 rose eight per cent to Rs 838 crore from Rs 777 crore last year.

Net interest income in FY13 increased marginally to Rs 1,975 crore compared with Rs 1,953 crore in FY12.

As on March 31, 2013, total advances increased 17 per cent to Rs 44,097 crore, while deposits increased 18 per cent to Rs 57,615 crore.

Net interest margin (NIM) as on March 31, 2013, stood at 3.37 per cent.

Net non-performing assets increased to 0.98 per cent as on March 31, 2013, from 0.53 per cent as on March 31, 2012.

Dividend

The board has proposed a dividend of Rs 9 per equity share (face value of Rs 10 each) for the year ended March 31, 2013.

The shares of Federal Bank ended 1.73 per cent higher at Rs 462.30 on the BSE.

beena.parmar@thehindu.co.in

Source: thehindubusinessline