Federal Bank’s Q1 net jumps 64% to Rs 601 cr in best-ever quarterly show

Home » Federal Bank’s Q1 net jumps 64% to Rs 601 cr in best-ever quarterly show
Federal Bank’s Q1 net jumps 64% to Rs 601 cr in best-ever quarterly show




Kochi-based private sector lender reported a 63.5 per cent increase in net profit in the April-June quarter of FY23, aided by lower provisions and a healthy rise in net interest income (NII). Its net profit rose to Rs 600.66 crore in Q1 compared to Rs 367.29 crore in the year-ago period. This is the highest ever quarterly profit reported by the bank.

Shares of the lender jumped over 2 per cent post the Q1 earnings and were trading at Rs 99.35 at 1:25 PM.

“We have delivered strong broad based credit growth while overall costs have been well managed, resulting in the highest ever profits,” said Shyam Srinivasan, MD&CEO, . Also Read: Federal Bank’s loan book grows 16.3% YoY to Rs 1.54 trillion in Q1

The lender’s NII, the difference between interest earned and expended, rose 13.1 per cent to Rs 1,604.5 crore in Q1FY23. But other income was down 30.2 per cent year on year (YoY) to Rs 453 crore.

Net interest margin, a measure of profitability, stood at 3.22 per cent, up 7 basis points YoY and 6 basis points sequentially.

Provisions and contingencies of the lender fell by 74 per cent YoY to Rs 166.68 crore in Q1 but sequentially it more than doubled.

Asset quality improved as gross (NPAs) fell by 11 basis points sequentially to 2.69 per cent at the end of June quarter. Net NPAs dropped 2 basis points sequentially to 0.94 per cent during the same period. Fresh slippages added in the quarter was to the tune of Rs 444 crore, with most of it coming from the retail portfolio.

Loan book of the lender grew 16 per cent YoY to Rs 1.54 trillion, with CV/CE segment growing 56 per cent, retail growing 14 per cent, auto loans growing 24 per cent, and gold loans growing 17 per cent.

On the other hand, deposits grew by 8 per cent YoY to Rs 1.83 trillion. The current account savings account (CASA) deposits reached Rs 67,540 crore and the CASA ratio stands at 36.84 per cent.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

#Federal #Banks #net #jumps #bestever #quarterly #show



Source link

Leave a Reply

Your email address will not be published.