Federal Bank Q1 profit up 29% at Rs 854 cr

New Delhi: Federal Bank on Thursday reported 29 per cent rise in net profit at Rs 854 crore for June quarter 2023-24 helped by decline in bad loans.

The South-based private sector lender had posted a net profit of Rs 661 crore for the year-ago period.

Total income during the quarter under review increased to Rs 5,757 crore from Rs 4,081 crore in the year-ago period, Federal Bank said in a regulatory filing.

Interest earned by the bank increased to Rs 5,025 crore from Rs 3,629 crore in the same period a year ago.

The bank's asset quality showed improvement as gross non-performing assets (NPAs) declined to 2.38 per cent of gross advances by the end of June 2023, from 2.69 per cent as of June 2022.

Net NPAs or bad loans too came down to 0.69 per cent as against 0.94 per cent a year ago.

However, Capital Adequacy Ratio of the bank decreased to 14.28 per cent from 14.57 per cent in the same quarter a year ago.