Kerala-based private lender Federal Bank has reported a 63.53% year-on-year (YoY) jump in net profit to Rs 600.66 crore in the fiscal first quarter ended June 2022, from Rs 367.29 crore a year ago.

Interest earned for the quarter rose 8.14% YoY to Rs 3,628.86 crore versus Rs 3,355.71 crore in the earlier-year quarter. 

Net interest income (NII) stood at Rs 1,605.5 crore, up 13.1% from Rs 1,418 crore a year ago.

Net interest margin (NIM) stood at 3.22%, up 7 basis points YoY and 6 basis points sequentially.

Provisions and contingencies of the lender fell sharply by 74% YoY to Rs 166.68 crore in Q1.

The bank’s other income was down 30.2% YoY to Rs 453 crore.

The bank’s asset quality improved with gross non-performing assets (NPA) at 2.69% as of June 2022, compared to 2.80% in the March quarter and 3.50% in the year-ago quarter.

Fresh slippages added in the quarter was Rs 444 crore, with most of it coming from the retail portfolio.

The bank’s loan book grew 16% YoY to Rs 1.54 trillion, with CV/CE segment growing 56%, retail growing 14%, auto loans at 24% and gold loans at 17%.

Deposits grew 8% to Rs 1.83 trillion. The current account savings account (CASA) deposits touched Rs 67,540 crore while the CASA ratio stood at 36.84%.