Private lender Federal Bank Ltd. reported a 2391.1 percent increase in net profit on account of an extremely low base. The net profit growth in the January-March quarter of the financial year 2016-17 was the highest ever for the bank.
Profit rose to Rs 256.59 crore from Rs 10.30 crore in the same quarter last year.
The Kerala-based bank’s net interest income grew 22.8 percent to Rs 842 crore compared to Rs 685.90 crore year-on-year. Other income grew 24.4 percent to Rs 282.11 crore.
Asset Quality Improves
Asset quality improved on a sequential as well as a year-on-year basis.
Gross non-performing assets in absolute terms declined 51.8 percent to Rs 941.20 crore compared to Rs 1,951.60 crore in the previous quarter. In percentage terms, the gross NPA declined to 2.3 percent compared to 2.77 percent in the third quarter. Net NPAs declined to 1.28 percent from 1.58 percent quarter-on-quarter.
Shares of the bank rose as much as 13.6 percent, the biggest intraday jump in nearly eight years, after the results were announced.