Private sector lender Federal Bank on Thursday said it expects the slippages to decline in the fourth quarter of FY19 due to restructuring in micro, small and medium enterprises (MSME) sector.
The annualised slippage ratio run-rate would come down in the coming quarters and expect the overall credit cost to remain in 65-75 basis points (bps) range, said Shyam Srinivasan, MD and CEO, Federal Bank.
One basis point is a hundredth of a percentage point.
Federal Bank on Thursday posted a 28.3 percent increase in net profit at Rs 333.63 crore for the third quarter ended December 31, 2018.
The total income of the lender also improved to Rs 3,299.96 crore during the third quarter as against Rs 2,729.83 crore in the year-ago period.
On the operating profit, Srinivasan said year-on-year (Y-o-Y) it is up 26 percent, sequentially the difference is because of the extra provisions.
“Our interest income, fee income profit -- net and operating profit -- is an all-time high and this momentum looks well set because that has been the run rate for the bank for many quarters now," he said.