Federal Bank on Friday has announced unaudited Financial Results for the quarter ended 30th September 2021. Profit after tax (PAT) for the Sep-21 quarter was up 50% at Rs460cr. The provisions for bad and doubtful assets fell by nearly 60% on a yoy basis and that was the key driver for the bank to show such a sharp spike in net profits.
Commenting on the results and financial performance, Shyam Srinivasan, Managing Director & CEO, Federal Bank said, “The Bank, amidst the volatile environment, has delivered a very encouraging performance braving a lot of odds. We witnessed strong traction in NIM and pick up in NII on the back of good credit growth in certain segments. Strong recovery and upgrades helped in virtually no credit cost for the quarter.”
“CASA growth of 18% YoY led CASA ratio to reach an all-time high of 36%. This further strengthens the granularity of our deposit portfolio. Inward Remittances continues to be a strong forte for the Bank with a market share of 20.54%. The digital story of the Bank continues to prosper with Fintech partnerships progressing well and contributing to 50% + of new accounts booked,” Shyam Srinivasan added.
Total Business of the Bank reached Rs.306399.38 Cr registering a growth of 9.56% as on 30th September 2021. Total Advances grew from Rs. 125208.57 Cr to Rs. 137313.37 Cr. Total Deposits increased from Rs. 156747.39 Cr as on 30th September 2020 to Rs. 171994.75 Cr as on 30th September 2021.
Resident Savings Bank Deposits of the Bank grew from Rs. 23084.29 Cr to Rs. 27716.43 Cr registering a growth of 20.07%. CASA Deposits clocked a growth of 17.82% YoY to reach Rs. 62190.88 Cr.
On the Asset side, Agri advances grew from Rs. 14880.35 Cr to Rs. 17890.00 Cr registering a growth of 20.23%. Gold Loans registered a growth of 25.88% reaching Rs. 15976.00 Cr as on 30th September 2021. Retail Advances grew by 11.76% to reach Rs. 44264.37 Cr.
The Bank earned Net Interest Income of Rs. 1479.42 Cr for the quarter ended 30th September 2021. Net Interest Margin stood at 3.20% as on 30th September 2021.
Q2FY21 Vs Q2FY22 • Retail advances grew by 11.76% to reach Rs.44264.37 Cr
• Gold Loans registered a growth of 25.88% to reach Rs.15976.00 Cr
• Agri advances reached Rs.17890.00 Cr registering a growth of 20.23%
• CASA grew by 17.82% from Rs.52785.84 Cr to Rs.62190.88 Cr
• Total Deposits increased by 9.73% from Rs. 156747.39 Cr to Rs.171994.75 Cr
• Investments stood at Rs. 36976.73 Cr
• Book Value per share increased from Rs. 76.38 to Rs. 83.57
Gross NPA of the Bank as at the end of Q2 FY22 stood at Rs. 4445.84 Cr, which as a percentage to Gross Advances stood at 3.24%. The Net NPA and Net NPA as a percentage to Net Advances as on 30th September 2021 stood at Rs.1502.44 Cr and 1.12% respectively. Provision Coverage Ratio (including technical write-offs) was 79.33%.
