Federal Bank posts stable quarterly earnings

Federal Bank reported its quarterly results with slight deterioration in asset quality over the previous quarter on Monday. However, the interest income and profitability showed strong performance.

NII for the quarter rose by 20.6 per cent yoy and 5.7 per cent qoq to Rs.949 crore in Q3FY18 compared to Rs.791 crore in Q3FY17 and Rs. 898 crore in the previous quarter. This was largely aided by robust interest income growth of 9 per cent yoy and 5 per cent qoq.

The asset quality saw little deterioration over the previous quarter. The GNPA’s for the quarter rose by 13 bps to 2.52 per cent compared to 2.39 per cent in Q2FY18. Also the total GNPA increased by 11 per cent to Rs. 2,161 crore in Q3FY18 compared to Rs.1,951 crore in the previous year's corresponding quarter.

Provisions remained benign for the quarter at 2.3 per cent yoy growth and 8.1 per cent qoq decline to Rs. 162 crore in Q3FY18. The profitability also remained stable to Rs. 260 crore in Q3FY18 compared to Rs. 263 crore in the previous quarter.

Capital adequacy improved steadily over previous year s CAR ( Basel III) stood at 14.4 per cent compared to 12.28 per cent in the previous year's corresponding quarter.

The stock is currently trading near day low at Rs. 108.8 down by 4.19 per cent at 10:05 hours.