Net NPA falls below 1 pc; net worth nearing Rs20,000 cr
BBN Bureau
KOCHI/July 15-2022: Federal Bank, Kerala’s largest bank by far on all counts, has reported a handsome growth of 64 per cent in its net profit to Rs601 crore for the first quarter (Q1) of the financial year 2022-23 (FY23).
The bank delivered an operating profit of Rs973 crore for the said quarter ending June 30, 2022.
A smart core fee income to the tune of Rs441 crore that witnessed a growth of 73 per cent has played a significant role in helping the bank build a strong bottom line this time.
More encouraging is the fact that the NPA has been bridled to a very encouraging level.
NPA down
While the gross NPA fell by 81 basis points from 3.50 per cent to 2.69 per cent, net NPA was brought down by 29 basis points from 1.23 per cent to 0.94 per cent as of June end, 2022.
While net interest income improved from Rs1418 crore to Rs1605 crore, total income saw a growth of 2 per cent, from Rs4,004 crore to Rs4,081 crore.
Shyam Srinivasan (seen in the picture), Managing Director & CEO, said the bank’s financial performance for Q1 FY23 has been very encouraging and reflects the all-round progress the bank has been making over time.
“We have delivered strong broad based credit growth while overall costs have been well managed, resulting in the highest ever profits,” Srinivasan said.
The total business of the bank reached Rs3,35,045 crore as on June 30, 2022 from Rs2,99,158 crore a year earlier, registering a growth of 12 per cent.
Advances grow by 16 pc
Gross advances reached Rs1,54,392 crore during the period under review from Rs1,32,787 crore, pointing to a growth of 16 per cent.
Deposits
Deposits recorded a growth of 8 per cent to reach Rs1,83,355 crore from Rs1,69,393 crore during the said period. The Provision Coverage Ratio (PCR) stood at 65.03 per cent and after including technical write off, PCR is computed at 80.66 per cent.
The Capital Adequacy Ratio (CRAR) of the bank, computed as per Basel III guidelines, stood at 14.57 per cent as on June 30, 2022, whereas the net worth of the bank was at Rs19,267 crore as of June end, 2022.
