Federal Bank announced the Financial Results for the quarter ended 30th September 2023 on Monday, through an exchange filing. The key highlights of the results on a Y-o-Y basis are as follows:
➢ Total Business of the Bank reached Rs 425685.12 Cr
➢ Net Profit highest ever at Rs 953.82 Cr, grew 35.54 per cent
➢ Operating Profit highest ever at Rs 1324.45 Cr
➢ ROA for Q2 stood at 1.36 per cent and ROE stood at 15.72 per cent
➢ GNPA and NNPA brought down to 2.26 per cent and 0.64 per cent respectively.
➢ Total Deposits increased by 23.12 per cent
➢ Total Net Advances increased by 19.58 per cent
➢ Highest ever Net Interest Income at ₹ 2056.42 Cr, grew by 16.72 per cent
Commenting on the results and financial performance, Shyam Srinivasan, Managing Director & CEO, Federal Bank said “The Q2 Results are a sign of many of our initiatives coming together well and have helped us deliver our highest ever profits. Some of the marquee investments we raised in Q2 are a true testimony to our governance, social and environmental commitment standards. We are pleased to deliver on our commitments made to them and do stay determined to make continued progress on all our chosen areas in pursuit of our vision of being the Most Admired Bank.”
Strong Growth – Resilient Balance Sheet Performance
Total Business of the Bank reached Rs. 4,25,685.12Cr registering a growth of 21.49% as on 30th September 2023.
Total Deposits increased from Rs. 1,89,145.71 Cr as on 30th September 2022 to Rs. 2,32,868.43 Cr as on 30th September 2023.
On the Asset side, Net advances increased from Rs 1,61,240.32 Cr as on 30th September 2022 to Rs. 1,92,816.69 Cr on 30th September 2023. Retail Advances grew by 18.05% to reach Rs. 62,009.00 Cr. Business Banking advances grew by 18.16% to reach Rs. 15,997.14 Cr. Commercial Banking grew by 23.82% to Rs. 19,729 Cr. Corporate Advances registered a growth of 14.91% to reach Rs. 68,058.63 Cr from Rs. 59,228.42 Cr. The CV/ CE advances grew by 66.50% to reach Rs 2,734.00 Cr.
Highest Ever Operating Profit & Net Profit Growth
The Bank registered Operating Profit of Rs. 1,324.45 Cr and Net Profit of Rs. 953.82 Cr for the quarter ended 30th September 2023. Operating profit recorded a commendable growth of 9.26% on a year-on-year basis.
Remarkable Income Parameters
Net Interest Income grew 16.72 % from Rs. 1,761.83 Cr to Rs. 2,056.42 Cr as on 30th September 2023. Total income of the Bank grew 33.59% to Rs. 6,185.70 Cr. Earnings per share (EPS) annualized is Rs 16.57.
Key Ratios
ROA & ROE of the Bank for the quarter stood at 1.36% and 15.72% respectively.
Robust Asset Quality
Gross NPA of the Bank as at the end of Q2 FY23 stood at Rs. 4,436.05 Cr, which as a percentage to Gross Advances stood at 2.26%. The Net NPA and Net NPA as a percentage to Net Advances as on 30th September 2023 stood at Rs. 1,229.81 Cr and 0.64% respectively. Provision Coverage Ratio excluding Technical Write Off was 71.03%.
Net Worth & Capital Adequacy
Net worth of the Bank increased from Rs. 19,617.82 Cr to Rs. 26,032.07 Cr, as on 30th September 2023. Capital Adequacy Ratio (CRAR) of the Bank, computed as per Basel III guidelines stood at 15.50% as at the end of the quarter.
Footprint
The Bank has 1389 branches and 1935 ATMs/ Recyclers as on 30th September 2023.
