Private lender Federal Bank has reported an 8.2% decline in net profit at Rs 404 crore for the third quarter ended 31 December 2020, mainly due to higher provisioning for bad loans.

Total income, however, grew 5.43% to Rs 3,941.36 crore in the fiscal third quarter compared to Rs 3,738.22 crore a year ago.

Gross non-performing assets (NPAs), as a percentage of total advances, fell to 2.71% during the quarter under review, compared to 2.99% a year ago.

Net NPAs of the bank fell to 0.60% of the total assets in the December quarter versus 1.63% in the same period last year.

In absolute terms, gross NPAs stood at Rs 3,470.18 crore compared to Rs 3,618.69 crore a year ago.

Provisions other than tax and contingencies surged 161% to Rs 420.62 crore compared to Rs 160.86 crore a year ago.