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

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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.
Federal Bank Q2 profit rises 35.5% to ₹953 cr; net income up by 33.6%
The bank's total deposits increased from ₹1,89,145.71 crore to ₹2,32,868.43 crore during the quarter under review. 

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.

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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.

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