More Stories

Informist, Monday, Oct. 28, 2024

By Kshipra Petkar

MUMBAI – Federal Bank reported a net profit of INR 10.57 billion for the quarter ended September, up 10.8% on year. An average of estimates by 15 brokerages had pegged the lender's net profit at INR 9.95 billion, up 4.4% on year. The bottomline was aided by a rise in income and an improvement in asset quality. Sequentially, the net profit was up 4.7%.

The total income of the bank increased 22% on year to INR 75.41 billion in the reporting quarter. The net interest income of the bank increased 15% on year to 23.67 billion. The net interest margin moderated slightly to 3.12% as compared to 3.16% a quarter ago.

For Apr-Sept, the bank reported a net profit of INR 20.66 billion as compared to INR 18.08 billion year ago. For the same period, the bank reported a total income of INR 147.87 billion.
 

The provisions of the bank increased to INR 1.58 billion in Jul-Sept from INR 439 million as reported a year ago. The provision coverage ratio of the bank stood at 71.82% as of Sept. 30. This growth in provisions limited growth in the bank's profit.

Asset quality remained robust across all segments, the bank said in its investor presentation. The gross non-performing asset ratio of the bank improved to 2.09% as of Sept. 30 compared with 2.11% reported a quarter ago and the net NPA ratio improved to 0.57% as on Sept. 30 from 0.60% reported a quarter ago.

In the reporting quarter, the bank saw fresh slippages worth INR 4.28 billion. Most of the slippages were from the retail and the agriculture segments, as per the bank's investor presentation. The bank reported recovery and upgradation worth INR 2.72 billion. Credit costs were at 0.30% in Jul-Sept, higher from 0.27% a quarter ago. Basel III capital adequacy ratio stood at 15.20% as on Sept 30.

The bank reported gross advances of INR 2.34 trillion as on Sept. 30. Within gross advances, retail book outpaced wholesale book with an on-year growth of 22%. The retail-wholesale mix was at 56:44 as of Sept. 30.

Looking at the bank's high margin lending products, the credit card book was up 47% on year at INR 33.96 billion, personal loan book was up 21% on year at INR 39.25 billion and the micro, small and medium enterprise book was up 22% on year at INR 436.15 billion. Commercial vehicle and microfinance book was up 44% and 76% on year, respectively. In the reporting quarter, the cost of funds stood at 5.93% as compared to 5.90% as reported a quarter ago. 

The bank's total deposits were up 16% on year at INR 2.69 trillion as of Sept. 30. The current, savings account deposits were up 11% on year to INR 809.26 billion. The CASA ratio fell 110 basis points on year to 30.07% as on Sept. 30. "CASA ratio improves by 80 bps on quarter supported by solid growth in resident and non-resident savings book," the bank said in its investor presentation. The non-residential external deposits grew 9% on year to INR 781.32 billion. The bank opened 29 new branches in Apr-Sept. 

On the National Stock Exchange, the shares of Federal Bank closed 0.7% lower at INR 184.99 on Monday. The bank announced its results for Jul-Sept post market hours.  End

Edited by Akul Nishant Akhoury

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2024. All rights reserved.