Federal Bank Posts Higher-Ever PAT of Rs 953.82 Cr On Robust Asset Quality

Federal Bank announced the Financial Results for the quarter ended 30th September 2023. The bank reported a highest-ever net profit of Rs 953.82 Cr in Q2FY24 up by 35.54% YoY from Rs 703.71 Cr in Q2FY23 and its net income stood at Rs 6185.70 Cr in the quarter under review up by 33.59% YoY posted in the year-ago quarter.

For the quarter ended September 30th, 2023, the bank reported an operating profit of Rs. 1324.45 Cr and on a yearly basis, operating profit saw a noteworthy rise of 9.26%. As of September 30, 2023, Net Interest Income (NII) climbed 16.72% from Rs. 1761.83 Cr in Q2FY23 to Rs. 2056.42 Cr. The annualised earnings per share (EPS) is Rs 16.57 and the bank's ROA and ROE for the quarter were 1.36% and 15.72%, respectively.

As of September 30, 2023, the bank's total business amounted to Rs. 425685.12Cr, representing a rise of 21.49%. From Rs. 189145.71 Cr as of September 30, 2022, to Rs. 232868.43 Cr as of September 30, 2023, the total deposits saw a huge growth. Net advances on the asset side rose from Rs 161240.32 Cr as of September 30, 2022 to Rs 192816.69 Cr as of September 30, 2023.

The total value of retail advances went up 18.05% to Rs. 62009.00 Cr. Advances in business banking increased by 18.16% to Rs. 15997.14 Cr. To Rs. 19729.00 Cr., commercial banking had a 23.82% surge. Corporate Advances had a 14.91% rise in value from Rs. 59228.42 Cr in Q2FY23 to Rs. 68058.63 Cr in Q2FY24. The CV/ CE advances climbed 66.50% and stood at Rs 2734.00 Cr.

At the end of the second quarter of FY23, the bank's gross non-performing assets (NPA) were Rs. 4436.05 Cr., or 2.26% of gross advances. The Net NPA as of September 30, 2023, was Rs. 1229.81 Cr., and as a percentage of Net Advances, it was 0.64%. Excluding technical write-offs, the provision coverage ratio was 71.03%.

As of September 30th, 2023, the bank's net worth grew from Rs. 19617.82 Cr in Q2FY23 to Rs. 26032.07 Cr. As of the end of the quarter, the bank's Capital Adequacy Ratio (CRAR) was 15.50%. As of September 30, 2023, the bank featured 1389 branches and 1935 ATMs and recyclers across the nation.

Mr. Shyam Srinivasan, Managing Director & CEO, Federal Bank said "The Q2 Results are a sigma of many of our initiatives coming together well and has helped us deliver our highest ever profits. Some of the marquee investments we raised in Q2 are a true testimony to our governance, social and environmental commitment standards. We are pleased to deliver on our commitments made to them and do stay determined to make continued progress on all our chosen areas in pursuit of our vision of being the Most Admired Bank."