Federal Bank Q3 profit jumps 28%, beats estimates

Private-sector lender Federal Bank posted a 28.3 per cent jump in third-quarter profit on Thursday, as a healthy increase in interest income helped offset the impact of higher provisions.

Net profit was Rs 334 crore ($46.82 million) in the three months to Dec. 31, compared to Rs 260 crore a year earlier, the Kerala-based lender said.

That compares to analysts' average estimates of a profit of Rs 297 crore, I/B/E/S data from Refinitiv showed.


Asset quality was largely stable, with gross bad loans as a per centage of total loans at 3.14 per cent at the end of December, compared to 3.11 per cent in the previous quarter and 2.52 per cent a year earlier.

Interest earned rose 18.1 per cent to Rs 2,954 crore, while provisions climbed 17 per cent.