 "Fed bank")
Shares of Federal Bank slumped 7.8 per cent to Rs 128.5 per share in the intra-day trade on Friday after the lender posted weaker-than-expected operating performance in the March quarter (Q4FY23).
The private lender reported a net interest income (NII), which is the difference between interest received and interest expended, of Rs 1,909.29 crore during Q4FY23, as against a Bloomberg's consensus estimate of Rs 2,577 crore. That said, the reported NII was 25 per cent higher than last year's NII of Rs 1,525 crore. For the whole FY23, NII came in at Rs 7,232.16 crore, up 21 per cent YoY.
Further, annual net Interest income increased from Rs 5,961.96 crore to Rs 7,232.16 crore, registering a growth of 21.31 per cent YoY. Net interest margin (NIM) contracted to 3.31 per cent vs 3.49 per cent QoQ. Last year, NIM was 3.16 per cent.
The operating profit, meanwhile, swelled 67 per cent on year to Rs 1,334.58 crore in Q4FY23 vs Rs 798.20 crore in Q4FY22. Moreover, it reported record net profit of Rs 902.6 crore during the quarter, up 67 per cent from Rs 540.5 crore seen last year.
"We have delivered industry leading outcomes with net profit at Rs 903 crore, and ROE at an all-time high at 17.48 per cent. The consistent performance exhibited throughout the year has yielded in net annual profits of Rs 3,010.59 crore, while maintaining benign asset quality across the segments. It’s noteworthy that our market share gains across product categories is gathering momentum quarters," said Shyam Srinivasan, Managing Director & CEO, Federal Bank.
Bloomberg had pegged net profit at Rs 797 crore.
Loans and Deposits
The bank said its total business reached Rs 3.87 trillino as on March 31, 2023 from Rs 3.26 trillion last year, registering a growth of 18.74 per cent. Gross advances surged 20.14 per cent on year to Rs 1.77 trillion at the end of Q4FY23 from Rs 1.47 trilion.
Its agri-advances registered a growth of 21.46 per cent, corporate loans 23.45 per cent, commercial banking 17.91 per cent, and retail advances 17.16 per cent.
Deposits recorded a growth of 17.44 per cent to reach Rs 2.13 trillion from Rs 1.81 trillion YoY. The CASA deposits reached Rs 69,740.98 crore at the end of March, 2023.
On the asset quality front, gross non-performing asset (GNPA) ratio improved from 2.43 per cent to 2.36 per cent sequentially, while NNPA ratio improved to 0.69 per cent from 0.73 per cent.
However, its slippages increased on a QoQ basis to Rs 454 crore from Rs 412 crore. Provisions were at Rs 116.6 crore for Q4FY23 vs Rs 198.7 crore QoQ/Rs 75.2 crore YoY.
At 1:37 PM, shares of Federal Bank were 6.8 per cent lower at Rs 130 per share as against 0.7 per cent fall in the benchmark S&P BSE Sensex.
