The private sector bank, Federal Bank, is out with its financials for the third quarter of the current fiscal. In the October-December quarter the bank has recorded a 4 percent jump in its net profits, which stands at Rs. 211 crore. During the same period last fiscal, the bank had recorded net profits at Rs. 202 crore.
The reason behind the bank's modest increase in profitability is said to be a low growth in interest income and an increase in non-performing assets (NPAs).
The Kerala based bank's net interest income lowered by 6 percent and was recorded at Rs. 497 crore. Meanwhile, its ‘other income' hiked by 48 percent, at Rs. 204 crore. Compared to it, in the year ago period, its ‘other income' was reported at Rs. 138 crore.
The bank's net non-performing assets (NPA) hiked to 0.92 percent, rising from 0.74 percent recorded last year in the same quarter. Its current net interest margin stands at 3.47 percent.
Net advances reached an amount of Rs. 39,494 crore, increasing by about 19 percent as against deposits which grew by 10 percent and was recorded at Rs. 51,607 crore, as per data recorded on December 31, 2012.
Capital adequacy ratio declined to 14.92 per cent, as against 15.91 per cent in the third quarter last fiscal.