Federal Bank's loan grows 19.1% YoY in Q3; deposits cross Rs 2 trn mark

Pace of customer liabilities expands at slower pace of 12.8 per cent YoY

Federal Bank has posted 19.1 per cent year-on-year (YoY) growth in advances as of December 2022 (Q3 FY23), aided by demand in the festive season.

The private sector lender had posted 12 per cent growth in the third quarter of FY22. Retail advances in Q3 FY23 also expanded by 19.1 per cent, said the company in a filing with the BSE. Retail credit growth was 7.91 per cent a year ago.

Federal Bank’s wholesale credit book grew 19.0 per cent and the ratio of retail credit to wholesale credit was 54:46 at the end of December 2022.

Total deposits reached Rs 201,425 crore; they grew 14.8 per cent YoY and crossed the Rs 2-trillion mark. The pace of customer liabilities, or deposits excluding interbank deposits and certificates of deposit, expanded at a slower pace of 12.8 per cent YoY at Rs 1,92,451 crore at end of December 2022.

Certificates of deposit (CDs), a form of bulk deposits, grew 110.4 per cent YoY to Rs 6,691 crore. Sequentially, they surged from a base of Rs 4,186 crore at the end of September 2022.

Inter-bank deposits, instruments for raising funds or applying surplus resources, expanded by 42.8 per cent YoY to Rs 2,283 crore. Sequentially, they rose from a base of Rs 1,854 crore at the end of September 2022.

Growth in low-cost money—current account and savings account (CASA)—slowed to 7.2 per cent YoY at the end of December 2022 from 15.43 per cent a year ago. Also, the share of CASA deposits in total deposits declined to 34.25 per cent at end December 2022 from 36.68 per cent a year ago and 36.41 per cent in September 2022.