Federal Bank Q2 profit rises 35.5% to ₹953 cr; net income up by 33.6%

Federal Bank released the financial results for June to September quarter on Monday. During the quarter under review, the private sector lender's net profit surged 35.54% year-on-year  to ₹953.82 crore as against ₹703.71 crore in the corresponding period of the previous year.

In the September quarter, the company’s total income stood at ₹6,185.70 crore, up 33.59% as against ₹4,630.30 crore in the same period last year. The company’s operating profit surged by 9.26% to ₹1,324.45 crore as against ₹1,212.24 crore in the same period last year. During the period under review, the total business of the bank reached ₹4,25,685.12 crore, registering a growth of 21.49% YoY.

"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," says Shyam Srinivasan, MD & CEO, Federal Bank.

The bank's total deposits increased from ₹1,89,145.71 crore to ₹2,32,868.43 crore during the quarter under review. The bank’s net advances increased to ₹1,92,816.69 crore, up 19.58% as against ₹1,61,240 crore in the same period last year. The retail advances grew by 18.05% to reach ₹62,009 crore. The business banking advances grew by 18.16% to reach ₹15997.14 crore. The commercial banking grew by 23.82% to ₹19,729.00 crore. The corporate advances registered a growth of 14.91% to reach ₹68,058.63 crore from ₹59,228.42 crore. The CV/CE (commercial vehicle/construction equipment loan) advances grew by 66.50% to reach ₹2,734.00 crore.

During the quarter under review, the net interest income grew by 16.72% YoY to ₹2,056.42 crore from ₹1,761.83 crore in the same period last year. The bank’s ROA (return on assets) and ROE (return on equity) during the quarter under review stood at 1.36% and 15.72%, respectively.

"The gross non-performing assets (NPA) of the Bank at the end of Q2 FY23 stood at ₹4,436.05 crore, which as a percentage to gross advances stood at 2.26%. The net NPA and net NPA as a percentage to net Advances as on September 30, 2023 stood at ₹1,229.81 crore and 0.64%, respectively. The provision coverage ratio excluding technical write off was 71.03%," says the private sector lender in a statement.

As on September 30, 2023, the bank had 1,389 branches and 1,935 ATMs/recycles.

The share price of Federal Bank closed 0.70% lower at ₹148.45. During the session, the market capitalisation of the bank stood at ₹34,903.24 crore as more than 13.54 shares exchanged hands on the BSE as against the two-week average of 5.62 lakh shares.