Thursday, June 1, 2023

Federal Bank Ltd Q3FY23 Result First Cut – All-round and record-breaking performance
# Federal Bank Ltd. reported an upbeat performance in Q3FY23, with an all-time increase in Net Profit and NII and improvement in its Asset Quality.
# Net Interest Income grew by 11.1% QoQ/ up 27.1% YoY at Rs. 1,956.5 crores, reflecting the highest-ever profitability of the bank. NIM acted as the catalyst to the bank’s excellent performance at 3.49%, an increase of 19bps QoQ/ 22bps YoY, achieving the highest margin in the last 35 quarters.
# Pre- provisions Operating Profit (PPOP) sharply grew in double digits by 39.4% YoY (up 5.1% QoQ) to Rs. 1,274.2 crores, achieving the highest-ever profit in the history of the bank.
# Cost to Income ratio improved to 48.84% in Q3FY23 from 48.88% in Q2FY23 and 54.81% in Q3FY22.
# Provisions declined by 25.8% QoQ/ 7.2% YoY to Rs. 198.7 crores.
# Provision Coverage Ratio improved to 69.19% in Q3FY23 from 67.41% in Q2FY23 and 65.80% in Q3FY22.
# Net Profit grew in double-digits by 14.2% QoQ / up 54.0% YoY at Rs. 803.6 crores.
# Credit cost declined to 0.38% in Q3FY23 from 0.53% in Q2FY23 and up from 0.22% in Q3FY22.
# Asset Quality improved, with GNPA at 2.43% and Net NPA at 0.73% in Q3FY23; GNPA being the lowest in the last 21 quarters and Net NPA lowest in the last 8 quarters.
# Capital Adequacy Ratio stood at 13.35% in Q3FY23, a decrease of 49bps QoQ and 102bps YoY.
# CASA ratio declined further to 34.25% in Q3FY23 from 36.41% in Q2FY23 and 36.38% in Q3FY22.
# Total Deposits grew by 6.49% QoQ/ 22.57% YoY to Rs. 2.01 lac crores, crossing the milestone of Rs 2 lac crores for the first time. Total Advances grew in line with the Total Deposits by 6.08% QoQ/ 19.08% YoY to Rs. 1.71 lac crores.