Federal Bank, the Kerala-based private sector lender, on Tuesday reported net profit of Rs 1,007 crore in December quarter, that marked an upside of 25 per cent from Rs 804 crore in the same period last year. The sharp up move came on the back of sharply lower provisioning for bad loans. Federal Bank made provisions of Rs 91.22 crore as against Rs 199 crore in the corresponding period last year.

The bank's net interest income (NII), the difference between interest earned from loans and paid on deposits, rose 8.52 per cent to Rs 2,123.36 crore as against Rs 1,956.53 crore in the year ago period.

The bank's asset quality remained stable during the quarter as its gross non-performing assets (NPA), as a percentage of total advances, came in at 2.29 per cent versus 2.26 per cent in the previous quarter. In absolute terms, gross NPAs came in at Rs  4,628.79 crore.

Its net NPA came in unchanged at 0.64 per cent.

"During the quarter and nine months ended December 31, 2023, the Bank has issued 72,682,048 equity shares of 2 each for cash pursuant to a Preferential Allotment as per the relevant provisions of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 at 131.91 per share aggregating to 95,874.89 Lakhs (including share premium). This resulted in an increase of 1,453.64 Lakhs in Share Capital and 94,361.59 Lakhs (net of issue expenses) in Share premium account," the bank said in an exchange filing.

Key key highlights of December quarter:

• Total Business of the Bank reached Rs 4,38,776.39 crore
• Operating Profit at Rs 1,437.33 crore
• Return on asset (ROA) for Q3 stood at 1.39 per cent  and return on equity (ROE) stood at 14.80 per cent
• GNPA and NNPA at 2.29 per cent  and 0.64 per cent  respectively.
• Total Deposits increased by 18.96 per cent 
  Total net advances increased by 18.44 per cent 
  Highest ever Net Interest Income at Rs 2123.36 crore, grew by 8.53 per cent

“I am pleased that our team's dedicated effort has helped us register an all-time high net profit of 1007 Crores, a significant milestone in the journey of any organization which is dedicated to both growth and excellence. With an increase of over 100 branches in the past calendar year and a similar number planned for this year, our growth trajectory is well poised to sustain this positive momentum. As we grow and diversify across products, segments, and geography, we are further inspired to deliver on our purpose for existence, which is to be the Most Admired Bank in India,” said Shyam Srinivasan, Managing Director & CEO of Federal Bank.

The bank had 1,418 branches and 1,960 ATMs/ Recyclers at the end of December quarter.

As of 1:26 pm, Federal Bank shares traded 2.2 per cent lower at Rs 149.70, underperforming the Bankex index which was down 0.03 per cent.