In Moneycontrol Pro’s Ideas for Profit, Madhuchanda Dey from Moneycontrol.com talks about Federal Bank which had almost cleaned up its corporate book prior to pandemic.
The bank has reported shielded asset quality due to moratorium in Q2. Profit fell 26 percent year on year as the bank stepped up provisions to deal with likely rise in slippages due to the economic impact caused by the COVID-19 pandemic.
Net profit dropped to Rs 308 crore in the quarter ended September 2020 from Rs 417 crore a year ago as the bank more than doubled provisions in the period. Total provisions increased to Rs 592 crore from Rs 252 crore a year ago and up 50 percent compared to the quarter ended June.To know more, watch the video.