Federal Bank on Monday reported a 54% rise in its net profit to Rs 804 crore for the quarter ended December, lifted by a growth in advances. The bottom line grew 14.2% on a sequential basis.
Advances rose 19.1% YoY to Rs 1.7 trillion , aided by a growth in its retail and agricultural loans. Retail advances rose 18.1% to Rs 53,936.5 crore, the bank said in a press release. Agricultural advances rose 19.7% to Rs 22,050 crore.
Among other categories, corporate advances rose 19.1% to nearly Rs 62,183 crore. The commercial banking segment rose 18.4% to around Rs 16,795 crore.
The bank’s advances market share stood at an all-time-high of 1.26% in the quarter under review, an investor presentation from the bank said.
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“When we began FY23, we had guided for credit growth in high teens. That is continuing to progress. I do not see that changing in Q4. At this juncture, it is good to take a view of one or two quarters at a time as there are many moving parts. I do not think India is operating independent of global developments,” Shyam Srinivasan, managing director and chief executive officer, said in the earnings call. “As a bank, we have certain distinctive strengths and areas of focus where we see enough opportunity to grow and gain share as we have been doing for many quarters for now. Our commitment of 17-18% credit growth for FY23 is intact and we will be able to deliver on that as well as deposits to match that.”
On the liability side, deposits rose 14.8% to Rs 2 trillion. Within this, CASA deposits rose 7.19% y-o-y to nearly Rs 69,000 crore as on December 31, according to the investor presentation.
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The bank’s net interest income rose 27% to Rs 1,957 crore. The net interest margin rose to 3.49% from 3.27% a year ago.
The gross non-performing asset ratio fell to 2.42% from 2.45% a quarter ago. It stood at 3.10% a year ago. The net NPA ratio fell to 0.78% as on December 31 from 0.82% a quarter ago. It stood at 1.11% a year ago.