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Private lender Federal Bank has published its Q2FY23 results wherein the bank has reported a massive 53% YoY surge in profits.
The Bank reported a net profit of Rs 703.7 crores for the quarter ending in September 2022, up 52.9% YoY when compared to Rs 460.26 crores reported in the corresponding quarter last year. According to MD and CEO of Federal Bank, Shyam Srinivasan, this was the strongest quarter for the Bank in terms of profit.
The total income of the bank surged 19.6% YoY during the quarter to reach Rs 4,630.30 crores. The lender's net interest income for the quarter stood at Rs 1,762 crores, up 19%. Net interest margin improved 10bps YoY to Rs 3.3%. Other income improved to Rs 610 crores, up 24% as the Bank witnessed all-around growth during the quarter.
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The asset quality of the bank showed significant improvement as Gross NPAs came down to 2.46% from 2.69%, its lowest in 24 quarters, while its Net NPAs dipped to 0.78%, the lowest in 34 quarters.
The provisions and contingencies reserved for the bank rose to Rs 267.8 crores sequentially. However, the provisions dipped annually as the Bank had provisions of Rs 292 crores last year.
The capital adequacy ratio stood at 13.84%.
The shares of Federal Bank have proven to be a good investment as the bank's stock has grown 52% in 2022. It currently trades at around Rs 132.90 per share.
Article by Aman Agarwal.
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