Private sector lender Federal Bank has reported a healthy 56.7 percent year-on-year growth in Q2 FY20 profit, driven by other income and lower tax cost, but provisions remained elevated.
Profit rose to Rs 416.7 crore against Rs 266 crore in same period last year.
Net interest income grew by 9.9 percent YoY to Rs 1,123.8 crore, with loan growth at 14.8 percent.
Asset quality weakened during the quarter under review with gross non-performing assets (NPA), as a percentage of gross advances, rising 8 bps to 3.07 percent and net NPA increasing 10 bps to 1.59 percent quarter-on-quarter.
Fresh slippages at the end of Q2 increased to Rs 540 crore against Rs 415 crore at the end of Q1.
Provisions increased sharply to Rs 251.8 crore versus Rs 192 crore in Q1 FY20 but fell from Rs 288.8 crore in Q2 FY19.
The stock was quoting at Rs 80.55, down Rs 3.95, or 4.67 percent on the BSE at 1342 hours IST.
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