Federal Bank rose 1.69% to Rs 98.95 after the private bank posted a 63.5% rise in standalone net profit to Rs 600.66 crore in Q1 FY23 from Rs 367.29 crore in Q1 FY22.
The bank's total income grew 1.94% to Rs 4081.48 crore in Q1 FY23 compared with Rs 4003.97 crore in Q1 FY22. Operating profit before provisions and contingencies fell 14.11% year on year to Rs 973.37 crore in Q1 FY23.Net interest income stood at Rs 1,605 crore in Q1 FY23, up 13% over Rs 1,418 crore in the same quarter last year. Net interest margin improved marginally to 3.22% in Q1 FY23 from 3.15% in Q1 FY22.
Provisions and contingencies fell 74% to Rs 166.68 crore in Q1 FY23 from Rs 639.94 crore in Q1 FY22. The Provision Coverage Ratio stood at 65.03% and after including technical write off at 80.66%.
The capital adequacy ratio stood at 14.57% in Q1 FY23 as compared to 14.64% in Q1 FY22. Provision coverage ratio stood at 65.03% in Q1 FY23 and after including technical write off at 80.66%. The Capital Adequacy Ratio (CRAR) of the bank, computed as per Basel III guidelines, stood at 14.57% as on 30th June 2022.
Gross NPA and net NPA of the Bank as at the end of the quarter stood at Rs 4155.33 crore and Rs 1420.25 crore respectively. Gross NPA as a percentage to gross advances stood at 2.69% and Net NPA percentage is at 0.94% as on 30th June 2022.
Gross advances recorded a growth of 16% to reach Rs 1,54,392 crore from Rs 1,32,787 crore posted on 30 June 2022. Total deposits reached Rs 1,83,355 crore from Rs 1,69,393 crore as on 30 June 2022.
The CASA deposits grew 15% YoY to Rs 67,540 crore in Q1 FY23 and CASA Ratio improved to 36.84% in Q1 FY23 from 34.81% posted in Q1 FY22.
During the quarter, Agri advances registered a growth of 19% YoY to Rs 19,988 crore from Rs 16,827 crore. Business banking advances registered a growth of 18% YoY to Rs 12,799 crore. Commercial banking advances registered a yearly growth of 20% to Rs 15,349 crore.
Commenting on the results, Shyam Srinivasan, managing director & CEO said, Our financial performance for Q1 FY23 has been very encouraging and reflects the all-round progress we have been making over time. We have delivered strong broad based credit growth while overall costs have been well managed, resulting in the highest ever profits. We are committed to improving on all key metrics in the period ahead with a range of high-quality offerings backed by a very good CRM capability that we have recently launched.
Federal Bank operates through four segments: treasury, corporate or wholesale banking, retail banking and other banking operations. The Bank has 1291 branches, 1860 ATMs/ Recyclers as on 30th June 2022.
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