 "Federal Bank")
Kerala-based Federal Bank has posted a 67 per cent rise in net profit in Q4 FY23 at Rs 903 crore, compared to Rs 541 crore during the same quarter in FY22.
The bank posted its highest-ever operating profit in Q4 FY23 at Rs 1,335 crore, up 67 per cent from Rs 798 crore in the same quarter in FY22. In the latest quarter, net interest income grew 25 per cent to Rs 1,909 crore compared to Rs 1,525 crore in Q4 FY22. Non-performing assets (NPA) were seen down to 2.36 per cent from 2.80 per cent at the end of March 2022. Net NPA also came down from 0.96 per cent last year to 0.69 per cent in 2022-23. The provision coverage ratio stood at 70.02 per cent by the end of March 2023.
“Our return on assets and return of equity, in addition to operating profit, has been at an all-time high. We are expecting all our portfolios to grow in the coming quarters. Our gold loan segment grew by 20 per cent during the year and we expect a similar growth in FY24 as well,” said Shyam Srinivasan, managing director and chief executive officer, Federal Bank. The return on assets (RoA) for Q4 FY23 stood at 1.45 per cent while return on equity (ROE) at 17.48 per cent.
During the entire FY23, the bank posted a net profit of Rs 3,011 crore, up 59 per cent from Rs 1,890 crore in FY22. The operating income during FY23 was seen up 28 per cent to Rs 4,794 crore from Rs 3,758 crore last year.
The bank’s total business reached Rs 3.87 trillion as on March 2023 from Rs 3.26 trillion as on March 2022, growing 18.74 per cent. Gross advances reached Rs 1.77 trillion on March 31, 2023 from Rs 1.47 trillion as on March 31, 2022, registering a growth of 20 per cent. Advances for agriculture grew 21.46 per cent to reach Rs 23,355 crore, from Rs 19,227.93 crore in FY22.
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The bank’s corporate book grew 23.45 per cent year-on-year (YoY) to reach Rs 64,311.34 crore. Harsh Dugar, group president and country head, wholesale banking at Federal Bank, said that the lender’s corporate loan book is robust. Commercial banking advances registered a growth of 18 per cent to reach Rs 17,274 crore and retail advances registered a growth of 17 per cent to reach Rs 56,077 crore.
The bank’s deposits recorded a growth of 17 per cent to reach Rs 2.13 trillion as on March 31, 2023 from Rs 1. 81 trillion during the same period last year. The CASA deposits reached Rs 69741 crore as on March 31, 2023.
The bank’s capital adequacy ratio (CRAR) stood at 14.81 per cent by the end of March 2023.The board of directors has recommended a dividend of 50 per cent per equity share having face value of Rs 2 for the year ended March 2023.
