Mumbai 

Federal Bank on Monday reported a 54 per cent jump in net profit in the quarter (Oct-Dec) of FY23, aided by a healthy net interest income (NII) that was shaped by strong loan growth.

The Kochi-based private sector lender's profit after tax for Q3 FY23 stood at Rs 803.61 crore, compared to Rs 521.73 crore in the same period a year ago. It is the bank's highest ever quarterly net profit.

NII increased by 27.14 per cent year-on-year (YoY) to Rs 1,956.53 crore, backed by advances growth of 19 per cent. Net interest margin (NIM) stood at 3.49 per cent in Q3FY23, up 19 basis points (bps) from last quarter and 22 bps from the year-ago quarter. The NIM of the lender is at a 35-year high.

Provisions for bad assets came down in Q3 FY23 to Rs 198.69 crore, a 7 per cent drop from the year-ago quarter and 25 per cent sequentially. Gross non-performing assets (NPAs) were at 2.43 per cent at the end of Q3 FY23, the lowest in 21 quarters. Net NPAs stood at 0.73 per cent, an improvement of 5 bps over last quarter, lowest in eight quarters.

The lender saw Rs 398 crore of fresh slippages in the quarter, with a bulk of it (Rs 181 crore) coming from the retail portfolio, followed by the commercial credit book, and the agri portfolio.