Federal Bank Q3 Net Increases 54% To Rs Rs 803.6 Cr

Federal Bank on Monday reported a 54 per cent year-on-year increase in its net profit at Rs 803.6 crore, compared to Rs 521.7 crore in the same quarter last year.

Commenting on the results, Shyam Srinivasan, Managing Director & CEO, said, “An all-round strong operating performance has helped us deliver the highest ever quarterly profit of Rs 804 crore. Credit Cost has improved on the back of continued strong asset quality, with GNPA and NNPA at 2.43 per cent and 0.73 per cent respectively. Broad based asset growth of 19 per cent, coupled with core revenue profile has yielded in higher ROA, currently at 1.33 per cent.“

Balance Sheet
Total Business of the Bank reached Rs. 369581.25 Cr registering a growth of 16.89 per cent as on 31st December 2022. Total Deposits increased from Rs.175431.70 Cr as on 31st December 2021 to Rs.201408.12 Cr as on 31st December 2022. CASA Deposits grew by 7.19 per cent to reach Rs.68967.14 Cr.

On the Asset side, Total Advances increased from Rs.143638.49 Cr as on 31st December 2021 to Rs.171043.02 Cr as on 31st December 2022. Retail Advances grew by 18.13 per cent to reach Rs.53936.45 Cr. Agri advances reached Rs.22050.00 Cr registering a growth of 19.70 per cent. Business Banking advances grew by 18.03 per cent to reach Rs. 14238.36 Cr. Commercial Banking grew by 18.40 per cent to Rs. 16794.70 Cr. Corporate Advances registered a growth of 19.13 per cent to reach Rs.62182.66 Cr from Rs.52197.97 Cr.

Operating Profit & Net Profit
Operating Profit of the Bank grew by 39.37 per cent to Rs. 1274.21 Cr for the quarter ended 31st December 2022 from Rs. 914.29 Cr as on 31st December 2021. Net Profit for the quarter ended 31st December 2022 is Rs. 803.61 Cr, an increase of 54.03 per cent over Rs. 521.73 Cr during the corresponding quarter of the previous year.

Income & Margins
Net Interest Income for the quarter ended 31st December 2022 grew by 27.14 per cent to Rs. 1956.53 Cr from 1538.90 Cr for the quarter ended 31st December 2021. Other Income of the Bank grew by 10.29 per cent to Rs.534.00 Cr from Rs.484.19 Cr for the quarter ended 31st December 2021. Net Interest Margin increased by 22 bps to reach 3.49 per cent.

Asset Quality
Gross NPA of the Bank at the end of Q3 FY23 stood at Rs. 4147.85 Cr, which as a percentage to Gross Advances stood at 2.43%. The Net NPA and Net NPA as a percentage to Net Advances as on 31st December 2022 stood at Rs. 1228.59 Cr and 0.73 per cent respectively. Provision Coverage Ratio (including technical write-offs) was 83.44 per cent. Credit Cost for the Quarter stood at 0.38 per cent.

Net Worth & Capital Adequacy
Net worth of the Bank increased from Rs. 18089.19 Cr to Rs 20456.75 Cr, as on 31st December 2022. Capital Adequacy Ratio (CRAR) of the Bank, computed as per Basel III guidelines stood at 13.35 per cent as at the end of the quarter.