Federal Bank Q3 net up 9% at Rs 230 crore on improved assets

Private sector lender Federal Bank today reported a 9.18 per cent rise in net profit for the third quarter ended December 2013 at Rs 230.13 crore on the back of improved asset quality.

"Net profit increased by 9.18 per cent from Rs 210.78 crore in quarter ended December 31, 2012 to Rs 230.13 crore in the quarter ended December 31, 2013," the bank said in a release.

Total income of the bank also rose by 9.87 per cent in the third quarter (October-December) of FY14 from a year ago to Rs 1,895.92 crore. Total income during the same quarter of the previous fiscal stood at Rs 1,725.62 crore.

Bank's asset quality improved as the gross as well as net non-performing assets (NPAs) or bad loans were trimmed during the quarter.

Gross NPAs during the period fell from Rs 1,564 crore to Rs 1,201 Crore (3.85 per cent to 2.83 per cent), while net NPAs fell from Rs 362 crore to Rs 356 crore (0.92 per cent to 0.86 per cent), it said in the statement.

The net interest margin (NIM), the key gauge for profitability, stood at 3.24 per cent during the quarter under review. And net interest income rose by 9.70 per cent from a year ago to Rs 545.57 crore.

Federal Bank scrips were trading 1.35 per cent down at Rs 80.60 apiece during noon trade on the BSE.