The bank said the share of its customers who have availed of the repayment moratorium had fallen to 24% by value as on July 12 from 35% as on May 25.<\/span><\/figure>\n<\/div>\nFederal Bank\u2019s net profit for the June quarter fell 21.6% year on year (yoy) to Rs 401 crore as the lender set aside Rs 395 crore in provisions \u2014 195.5% higher than that in the same period a year ago. Of the total provisions, Rs 186 crore was towards expected stress from the Covid-19 outbreak and the associated lockdown.<\/p>\n
The bank said the share of its customers who have availed of the repayment moratorium had fallen to 24% by value as on July 12 from 35% as on May 25. Shyam Srinivasan, MD & CEO of Federal Bank, said the reduction in the number of moratorium accounts had been broad-based across customer segments. \u201cAcross the portfolios, we have seen it reduce between 30% and 40%, whether it\u2019s agri, retail, business banking, commercial banking, corporate banking,\u201d he said, adding, \u201cCorporate has seen a significantly better improvement by about 50%. That\u2019s because one or two very good corporates who took the moratorium initially have made the full repayments.\u201d<\/p>\n
As a share of segmental advances, Federal Bank saw the largest incidence of the moratorium being availed in the business banking category, where 42% of all advances are now under the standstill, down from 75% earlier.<\/p>\n
Federal Bank\u2019s net interest income (NII), the difference between interest earned and interest expended, grew 5.4% yoy to Rs 1,296 crore. Its net interest margin improved three basis points (bps), sequentially, to 3.07% in Q1FY21. The bank\u2019s total advances grew 9% yoy to Rs 1.23 lakh crore as on June 30, 2020. Deposits grew 17% yoy to Rs 1.55 lakh crore and the current account savings account (CASA) ratio rose 58 bps yoy to 32.02%.<\/p>\n
Srinivasan said the bank was seeing loan growth in some categories, such as gold loans, in geographies where people\u2019s mobility had not been restricted. Federal Bank has sanctioned loans worth Rs 1,380 crore and made disbursements to the tune of Rs 1,250 crore under the emergency credit line guarantee scheme (ECLGS) for small businesses.<\/p>\n
The bank put up a mixed show in terms of asset quality, with the gross non-performing assets (NPAs) ratio rising 12 bps, sequentially, to 2.96% and the net NPAs ratio down nine bps from the end of March to 1.22%. Federal Bank\u2019s shares closed at `49.85 on the BSE, down 2.45% from their previous close.<\/p>\n
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