Federal Bank Q1 net profit rises over 63%, shares rise
Premium- Shares of Federal Bank were trading 0.7% higher at ₹98 apiece on the BSE in afternoon deals
Federal Bank on Friday reported a 63.5% rise in its standalone net profit at ₹600.6 crore for the first quarter ended June 30, 2022 as compared to ₹367 crore in the same quarter last year. Shares of Federal Bank jumped to nearly a per cent higher at ₹98 apiece on the BSE in afternoon deals.
Meanwhile, its net interest income or NII, the difference between interest earned and interest expended, rose 13% to ₹1,604.5 crore as compared to ₹1,418 crore year-on-year (YoY). Its net interest margin (NIM) improved to 3.22%, higher by 7 bps YoY and 6 bps QoQ.
Federal Bank's asset quality improved as gross non performing assets (NPAs) stood at 2.69% during Q1FY23 as compared to 2.80% from the previous quarter. On the other hand, the lender's net NPAs 0.94% from 0.96% quarter-on-quarter (QoQ).
Provisions (other than tax) and contingencies rose to ₹166.7 crore versus ₹75 crore, however, declined from ₹640 crore in the year-ago quarter. Capital Adequacy ratio under Basel III stood at 14.57% from 15.77% in March 2022 quarter 14.64 in June 2021 quarter. The bank said its other income of ₹453 crore, was impacted by lower Treasury gains and loss on revaluation of Investments.
The bank's total savings deposits grew by 12% YoY whereas CASA (current account savings account) grew by 15% YoY and CASA Ratio stood at 36.84%. Meanwhile, its total advances grew by 16% from the year-ago quarter.
Federal Bank shares are up more than 12% in 2022 (YTD) so far as compared to about 9% fall in benchmark Sensex.
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