Mumbai (Maharashtra) [India], May 17 (ANI): Private sector lender Federal Bank said on Monday its profit after tax for the January to March quarter was up by 58 per cent at Rs 521 crore.
The sharp growth was mainly due to loan loss provisioning falling from Rs 578 crore in the Q4 FY20 to Rs 256 crore in Q4 FY21 quarter.
Profit after tax margins too improved sharply from 7.79 per cent to 13.04 per cent in the same period.
However, total consolidated revenues declined by 5.36 per cent to Rs 3,996 crore. Due to lower yield on loans, interest income on loans was lower although the interest on RBI deposits were higher.
The investment income was flat but other income was sharply lower in Q4 FY21.
While gross non-performing assets (NPAs) were higher on sequential basis, net NPAs were lower -- indicating that substantial provisioning was already made.
However, return on assets at 0.26 per cent was below the private bank median of above 0.51 per cent. Capital adequacy was just above the statutory requirement, the bank said. (ANI)