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Federal Bank delivers highest ever quarterly net profit at ₹601 Cr with a YOY growth of 64%

FEDERAL BANK Q1-2023 RESULTS.

Federal bank Q1-2023 results

Net interest income has grown by 13% YoY and Current Account Savings Account (CASA) deposits have grown by 15% YoY

Federal bank Q1-2023 results- Kerala-based private sector lender Federal Bank on 15th July 2022 reported a 64% rise in its quarterly net profit to Rs 601 crore in the April to June 2022 quarter.

The bank had posted a net profit of Rs 367 crore in the same quarter previous fiscal. The bank has also managed to bring down its gross NPA and net NPA ratios during the same period.

Key Highlights

  • Net Profit of 601 Cr, grew by 64% YoY
  • ROA at 1.10% and ROE at 12.70%
  • CASA grew by 15% YoY and CASA Ratio at 36.84%
  • Core Fee Income of ₹441 Cr, increase of 73% YoY
  • GNPA and NNPA brought down to 2.69% and 0.94% respectively
  • Agri-Business grew by 19% YoY
  • Business Banking grew by 18% & Commercial Banking grew by 20% YoY
  • Market Share in Personal Inward remittance business at 21.06% (FY22)

Commenting on the results, Mr Shyam Srinivasan, Managing Director & CEO, said, “Our financial performance for Q1 FY23 has been very encouraging and reflects the all-round progress we have been making over time. We have delivered strong broad-based credit growth while overall costs have been well managed, resulting in the highest ever profits. We are committed to improving on all key metrics in the period ahead with a range of high-quality offerings backed by a very good CRM capability that we have recently launched.”

Working results at a glance

(₹ in Crore)

               Particulars

Year on Year

30-06-2022 30-06-2021 Growth %
Net Interest Income 1605 1418 13%
Total Income 4081 4004 2%
Gross NPA 2.69 3.50  -81 bps
Net NPA 0.94 1.23 -29 bps
Net Profit 601 367 64%

Operating Overview- Federal bank Q1-2023 results

Total Business

The total business of the Bank reached ₹ 3,35,045 Cr as on 30th June 2022 from ₹ 2,99,158Cr as on 30th June 2021, registering a growth of 12%.

Credit Growth

Gross Advances reached ₹ 1,54,392 Cr as on 30th June 2022 from ₹ 1,32,787 Cr as on 30th June 2021 registering a growth of 16%. Agri Advances registered a growth of 19% to reach ₹19,988 Cr from ₹16,827 Cr. Business Banking Advances registered a growth of 18% to reach ₹ 12,799 Cr. Commercial Banking Advances registered a growth of 20% to reach ₹ 15,349 Cr.

Deposit Growth

Deposits recorded a growth of 8% to reach ₹ 1,83,355 Cr as on 30th June 2022 from ₹ 1,69,393 Cr as on 30th June 2021. The CASA deposits reached ₹ 67,540 Cr. CASA Ratio stands at 36.84%. Resident Savings Bank deposit registered a growth of 19% to reach ₹ 31,102 Cr as on 30th June 2022.

Operating Profit & Net Profit

The Bank delivered an operating profit of ₹ 973 Cr as on 30th June 2022. The net profit is at ₹601 Cr as on 30th June 2022 up from ₹ 367 Cr as on 30th June 2021.

Income & Margins

Net Interest Income increased from ₹1,418 Cr to ₹1,605 Cr registering a growth of 13% as on 30th June 2022. Net Interest Margin stood at 3.22% for FY23.

Asset Quality

The Gross NPA of the Bank as on 30th June 2022 stood at ₹ 4,155 Cr. Gross NPA as a percentage to Gross Advances is 2.69%. The Net NPA stood at ₹ 1,420 Cr and Net NPA percentage is at 0.94% as on 30th June 2022. The Provision Coverage Ratio stood at 65.03% and after including technical write off at 80.66%.

Capital Adequacy & Net worth

The Capital Adequacy Ratio (CRAR) of the Bank, computed as per Basel III guidelines, stood at 14.57% as on 30th June 2022. The Net Worth of the Bank was ₹ 19,267 Cr.

Footprint

The Bank has 1291 branches, and 1860 ATMs/ Recyclers as on 30th June 2022. The Bank also has its Representative Offices in Abu Dhabi and Dubai and an IFSC Banking Unit (IBU) in Gujarat International Finance Tec-City (GIFT City). The Bank opened 10 new branches in a day during Q1FY23

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