Bank CEO says best-ever quarter; Share surges 5 pc to Rs130.75 on NSE
BBN Bureau
KOCHI/October 1-2022: Federal Bank, Kerala’s largest bank, has reported a 52.89 per cent year-on-year growth in its Q2, FY23 net profit from Rs460.26 crore to Rs703.71 crore, which is considered the highest ever quarterly profit for the bank.
Shares of Federal Bank closed today (Friday) on NSE at Rs130.75, gaining Rs5.85 or 4.68 per cent.
The operating profit, this too is the highest ever for the bank, during the same period improved by 32.91 per cent, from Rs912.08 crore to Rs1212.24 crore, whereas the net interest income (NII) too witnessed a growth of 19.09 per cent growth from Rs1479.42 crore to Rs1761.83 crore during the said period.
Total advances during the period increased from Rs1,37,313.37 crore to Rs1,63,957.84 crore, representing an increase of 19.40 per cent. Retail advances grew by 18.38 per cent to reach Rs52,438.89 crore, whereas the agri advances reached Rs21,090.70 crore, registering a growth of 17.96 per cent during the quarter under review.
Business banking advances grew by 17.20 per cent to reach Rs13,617.35 crore, commercial banking grew by 18.61 per cent to Rs16,240 crore. Corporate advances registered a growth of 20.70 per cent to reach Rs58,928.90 crore from Rs48,822.63 crore.
Shyam Srinivasan, Managing Director & CEO of Federal Bank, said this quarter has been bank’s strongest quarter till date with very good growth across all key parameters.
“We have delivered the highest ever net profit with Rs704 crore, 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,” Srinivasan added.
Asset quality
Gross NPA of the bank as at the end of Q2 FY23 stood at Rs4,031.06 crore, 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 September 30, 2022 stood at Rs1,262.35 crore and 0.78 per cent respectively.
Provision Coverage Ratio or PCR (including technical write-offs) was at 82.76 per cent as of September 30.
Net worth
Net worth of the bank increased from Rs17,551.94 crore to Rs19,617.82 crore, as on September 30, 2022. Capital Adequacy Ratio or capital to risk-weighted assets ratio (CRAR) of the bank, computed as per Basel III guidelines, stood at 13.84 per cent as at the end of the quarter.
