Federal Bank Q4 profit surges 67% to ₹903 cr; NII up 25%

Federal Bank has registered 67% growth in net profit at ₹903 crore on a year-on-year basis for the January-March quarter of 2022-23, as compared to ₹540.54 crore in the year-ago period, the bank said in a stock exchange filing. The Kerala-based private lender recorded the highest ever operating profit at ₹1,335 crore, up 67% YoY, as compared to ₹798.20 crore during the corresponding period last year.

Federal Bank's net interest income also increased to ₹1,909.29 crore for the said period, up 25.18%, as compared to ₹1,525.21 crore in the year-ago period. In Q4 FY23, Federal Bank's ROA was at 1.45% and ROE at 17.48%. Its GNPA and NNPA came down to 2.36% and 0.69%, respectively. Total advances increased by 20.14%; total deposits grew 17% YoY; and the capital adequacy ratio (CRAR) stood at 14.81%.

“We have delivered industry-leading outcomes with net profit at ₹903 crore QoQ and ROE at an all-time high at 17.48%. The consistent performance exhibited throughout the year has yielded in net annual profits of ₹3010.59 Cr, while maintaining benign asset quality across the segments,” said Shyam Srinivasan, managing director & CEO, Federal Bank.

The Board of Directors at its meeting held today has recommended a dividend of 50% per equity share having a face value of ₹2 for the year ended March 31, 2023. The dividend will be paid after the approval of shareholders at the Annual General Meeting.

For the full fiscal year, Federal Bank delivered an annual operating profit of ₹4,794.40 crore as on March 31, 2023. The annual net profit was at ₹3,010.59 crore as on March 31, 2023, up from ₹1,889.82 crore in the year-ago period.

Annual net interest income increased from ₹5,961.96 crore to ₹7,232.16 crore, registering a growth of 21.31% as on March 31, 2023. The net interest margin stood at 3.31% for FY23 and net total income registered a growth of 18.77% to reach ₹9,562.16 crore.

The total business of the bank reached ₹3,87,832.93 crore as on March 31, 2023, from ₹3,26,628.92 crore as on March 31, 2022, registering a growth of 18.74%. In credit growth, Federal Bank's gross advances reached ₹1,77,376.53 crore as on March 31, 2023, from ₹1,47,639.45 Cr as on March 31, 2022, registering a growth of 20.14%.

The bank's deposits recorded a growth of 17.44% to reach ₹2,13,386.04 crore in FY23, up from ₹1,81,700.59 crore as on March 31, 2022. The CASA deposits reached ₹69,740.98 crore as on March 31, 2023.

In terms of asset quality, the gross NPA of the bank as on March 31, 2023, stood at ₹4,183.77 crore, while the gross NPA as a percentage of gross advances was 2.36% as on 31st March 2023. The net NPA stood at ₹1,205.01 crore, while the net NPA percentage was at 0.69% as on March 31, 2023.

Despite the positive results, the Federal Bank stock dipped 8.18% to ₹128 on the NSE on Friday. The stock has seen a 5.54% fall in the past week; 6.57% in the past six months; and 7.04% in the year-to-date period.