Shares of Federal Bank on Tuesday jumped 8 per cent after the firm posted an 11 per cent increase in net profit to Rs 1,057 crore in the September quarter.

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The stock climbed 8 per cent to Rs 199.55 on the BSE.

At the NSE, it soared 7.83 per cent to Rs 199.49.

The lender had earned a net profit of Rs 954 crore in the year-ago period.

The total income increased to Rs 7,541 crore during the quarter under review against Rs 6,186 crore in the same quarter last year, Federal Bank said in a regulatory filing on Monday.

The bank reported an interest income of Rs 6,577 crore during the quarter, higher than Rs 5,455 crore in the same period a year earlier.

Net interest income (NII) grew 15 per cent to Rs 2,367 crore, as compared to Rs 2,056 crore in the same quarter a year ago.

As regards asset quality, the bank witnessed an improvement with gross non-performing assets (NPAs) declining to 2.09 per cent of the gross loans by the end of September 2024, from 2.26 per cent a year ago.

Similarly, net NPAs, or bad loans, moderated to 0.57 per cent from 0.64 per cent at the end of the second quarter of the previous fiscal year.