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Federal Bank Q2 web revenue slips 26% to Rs 308 crore

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Srinivasan mentioned the working revenue for the quarter was at Rs 1,007 crore, a rise of 40% YoY.

Federal Bank’s web revenue for the September quarter declined 26% 12 months on 12 months (yoy) to Rs 307.6 crore, impacted by a major enhance in provisions to additional strengthen the steadiness sheet. The Kerala-based lender had reported a web revenue of Rs 416 crore within the second quarter of the earlier fiscal and Rs 384.2 crore within the first quarter of FY21.

The financial institution mentioned provisions and contingencies greater than doubled to Rs 592.06 crore in Q2, from Rs 251.77 crore within the year-ago interval and Rs 394.62 crore within the June quarter.

Shyam Srinivasan, MD & CEO, mentioned the financial institution continues to climate the turbulence within the exterior setting by returning robust numbers for CASA and the asset high quality.

Srinivasan mentioned the working revenue for the quarter was at Rs 1,007 crore, a rise of 40% YoY.

“Liabilities have grown very well, in particular, CASA has shown 20% year-on-year growth and 6% sequential growth. Growth of low-cost deposits has helped keep the cost of funds lower. On the credit side, we had remarkable growth in our gold loan business and it grew 54% on a year-on-year basis, making it a driver of margin expansion,” he mentioned.

Gross NPA as on the finish of Q2FY21 stood at Rs 3,552.19 crore, which as a proportion to gross advances stood at 2.84%. The web NPA and web NPA as a proportion to web advances as on September 30, 2020 stood at Rs 1,218.14 crore and 0.99%, respectively. The provision protection ratio (together with technical write-offs) was 78.3%.

Federal Bank mentioned a mere Rs Three crore of loans slipped into NPAs and if not for the moratorium about Rs 237 crore of loans would have slipped into NPAs.

The lender additionally reported the highest-ever web curiosity revenue at Rs 1,380 crore, which grew 23% year-on-year. Its web curiosity margin improved sequentially to three.13%, from 3.07% within the first quarter of the present fiscal.

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