Federal Bank Continues Its Momentum with an all-time high Net Profit At inr804 Cr and Highest ever NII At inr1957 Cr.

Mumbai, 17 January 2023: Federal Bank announced Financial Results for the quarter and nine months ended on 31st December 2022. Highlights of the results on a Y-o-Y basis are as follows:

Highlights

•       Net Profit highest ever @ ₹ 804 Cr, increases by 54% YoY

•       Operating Profit highest ever @ 1274 Cr

•       ROA for Q3 at 1.33% and ROE at 15.91%

•       Highest ever Net Interest income at ₹ 1957 Cr, increases by 27.14% YoY

•       NIM increased to 3.49%, higher by 22 bps YoY

•       GNPA and NNPA brought down to 2.43% and 0.73% respectively.

•       Total Advances increased by 19.08%

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

 WORKING RESULTS AT A GLANCE

(Rs. in Crore)

Particulars Year on Year
31-12-22 31-12-21 Growth %
Net Profit 803.61 521.73   é54.03%
Operating Profit     1274.21 914.29 é39.37%
Net Interest Income 1956.53 1538.90   é27.14%
Other Income 534.00 484.19 é10.29%
Total Advances 171043.02 143638.49 é19.08%

  Balance Sheet 

Total Business of the Bank reached Rs. 369581.25 Cr registering a growth of 16.89% 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% 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% to reach Rs.53936.45 Cr. Agri advances reached Rs.22050.00 Cr registering a growth of 19.70%. Business Banking advances grew by 18.03% to reach Rs. 14238.36 Cr. Commercial Banking grew by 18.40% to Rs. 16794.70 Cr. Corporate Advances registered a growth of 19.13% to reach Rs.62182.66 Cr from Rs.52197.97 Cr. 

Operating Profit & Net Profit 

Operating Profit of the Bank grew by 39.37% 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% 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% 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% 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%.

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% respectively. Provision Coverage Ratio (including technical write-offs) was 83.44%. Credit Cost for the Quarter stood at 0.38%.

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% as at the end of the quarter.

Footprint

The Bank has 1333 branches and 1894 ATMs/Recyclers as on 31st December 2022.

Q3FY22 Vs Q3FY23 

  • Retail advances grew by 18.13% to reach Rs. 53936.45 Cr
  • Agri advances reached Rs. 22050.00 Cr registering a growth of 19.70%
  • Business Banking Advances grew by 18.03% from Rs.12063.20 Cr to Rs.14238.36 Cr
  • Commercial Banking Advances grew by 18.40% to reach Rs.16794.70 Cr
  • Corporate Advances reached Rs.62182.66 Cr registering a growth of 19.13%
  • Total Deposits increased by 14.81 % from Rs. 175431.69 Cr to Rs.201408.12 Cr
  • CASA Deposits grew by 7.19% to reach Rs.68967.14 Cr.
  • CASA as a percentage of total deposits stood at 34.24%

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