Federal Bank announced Financial Results for the quarter and half year ended 30th September 2022.
Commenting on the results, Shyam Srinivasan, Managing Director & CEO, said, “This has been our strongest quarter till date with very good growth across all key parameters. Strong business momentum has aided meaningful gains in market share. We have delivered the highest ever net profit with ₹ 704 Cr, ROA and ROE are in the right trajectory and the asset quality of the Bank continues to be strong at 2.46 per cent and 0.78 per cent. Credit costs are well controlled at 53 bps. We are encouraged by this and are working to ensure that the trend continues.”
Balance Sheet
Total Business of the Bank reached Rs. 350386.03 Cr registering a growth of 14.36 per cent as on 30th September 2022. Total deposits increased from Rs. 171994.74 Cr as on 30th September 2021 to Rs. 189145.71 Cr as on 30th September 2022. CASA Deposits grew by 10.74 per cent to reach Rs. 68873.27 Cr.
On the Asset side, Total Advances increased from Rs 137313.37 Cr as on 30th September 2021 to Rs. 163957.84 Cr as on 30th September 2022. Retail Advances grew by 18.38 per cent to reach Rs. 52438.89 Cr. Agri advances reached Rs.21090.70 Cr registering a growth of 17.96 per cent. Business Banking advances grew by 17.20 per cent to reach Rs. 13617.35 Cr. Commercial Banking grew by 18.61 per cent to Rs. 16240.00 Cr. Corporate Advances registered a growth of 20.70 per cent to reach Rs. 58928.90 Cr from Rs. 48822.63 Cr.
Operating Profit & Net Profit
Operating Profit of the Bank grew by 32.91 per cent to Rs. 1212.24 Cr for the quarter ended 30th September 2022 from Rs. 912.08 Cr as on 30th September 2021. Net Profit for the quarter ended 30th September 2022, was Rs. 703.71 Cr, an increase of 52.89 per cent over Rs. 460.26 Cr during the corresponding quarter of the previous year.
Income & Margins
Net Interest Income for the quarter ended 30th September 2022 grew by 19.09 per cent to Rs. 1761.83 Cr from 1479.42 Cr for the quarter ended 30th September 2021. Other Income of the Bank grew by 23.97 per cent to Rs. 609.52 Cr from Rs. 491.65 Cr for the quarter ended 30th September 2021. Net Interest Margin increased by 10bps to reach 3.30 per cent.
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Asset Quality
Gross NPA of the Bank as at the end of Q2 FY23 stood at Rs. 4031.06 Cr, which as a percentage to Gross Advances stood at 2.46 per cent. The Net NPA and Net NPA as a percentage to Net Advances as on 30th September 2022 stood at Rs. 1262.35 Cr and 0.78 per cent respectively. Provision Coverage Ratio (including technical write-offs) was 82.76 per cent. Credit Cost for the Quarter stood at 0.53 per cent.
Net Worth & Capital Adequacy
Net worth of the Bank increased from Rs. 17551.94 Cr to Rs. 19617.82Cr, as on 30th September 2022. Capital Adequacy Ratio (CRAR) of the Bank, computed as per Basel III guidelines stood at 13.84 per cent as at the end of the quarter.
Footprint
The Bank has 1305 branches and 1876 ATMs/Recyclers as on 30th September 2022.
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