Federal Bank Q2 PAT down 26.2% at Rs 308 cr on higher provisions

Non-public sector lender Federal Financial institution on Friday reported a 26.2 per cent decline in internet revenue at Rs 307.6 crore for the second quarter ended September over the identical interval a 12 months in the past. That is primarily because of a pointy rise in provisions and contingencies.

Sequentially, the Kochi-headquartered financial institution had posted a internet revenue of Rs 400.77 crore within the quarter ended June 30 (Q1FY21). Its inventory closed zero.97 per cent larger at Rs 52.25 per share on the BSE.

The financial institution mentioned it expects as much as three per cent of its mortgage e book (about Rs 350 crore) to come back up for restructuring beneath the Covid-19 regulatory bundle. Of this, company loans are anticipated to be round Rs 1,000 crore.

The financial institution’s Managing Director and Chief Govt Officer Shyam Srinivasan mentioned the mortgage portfolio contains one third every of retail credit score, enterprise (as much as Rs 25 crore), and company on the e book. Govt Director Ashutosh Khajuria mentioned the financial institution made provisions of 10 per cent within the September quarter. The financial institution’s internet curiosity revenue grew 23 per cent to Rs 1,380 crore within the second quarter.

The web curiosity margin improved to three.12 per cent within the September quarter from three.01 per cent within the year-ago interval. Different revenue, comprising payment and fee, grew by 21 per cent to achieve Rs 509 crore in Q2FY21. The provisions (factoring in non-performing belongings, or NPAs) and contingencies greater than doubled to Rs 592.06 crore in Q2FY21, from Rs 251.77 crore in the identical interval a 12 months in the past.

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