Net interest income stood at Rs 1,762 crore in Q2 FY23, up 19.1% over Rs 1,479 crore in the same quarter last year. Net interest margin improved marginally to 3.30% in Q2 FY23 from 3.20% in Q2 FY22.

Provisions and contingencies fell 8.5% to Rs 267.86 crore in Q2 FY23 from Rs 292.62 crore in Q2 FY22. Provision coverage ratio (including technical write-offs) was 82.76%. Credit cost for the quarter stood at 0.53%.

Net worth of the bank increased from Rs 17,551.94 crore to Rs 19,617.82 crore, as on 30 September 2022. Capital adequacy ratio (CRAR) of the bank, computed as per Basel III guidelines stood at 13.84% as at the end of the quarter.

Gross NPA and net NPA of the Bank as at the end of the quarter stood at Rs 4,031.06 crore and Rs 1,262.35 crore respectively. Gross NPA as a percentage to gross advances stood at 2.46% and Net NPA percentage is at 0.78% as on 30 September 2022.

Total advances recorded a growth of 19.4% to reach Rs 1,63,957.84 crore from Rs 1,37,313.37 crore posted on 30 Spetember 2022. Total deposits reached Rs 1,89,145.71 crore from Rs 1,71,994.74 crore as on 30 September 2022.

The CASA deposits grew 10.74% YoY to Rs 68,873.27 crore in Q2 FY23 and CASA Ratio improved to 36.41% in Q2 FY23 from 36.16% posted in Q2 FY22.

During the quarter, retail advances grew by 18.38% to reach Rs 52,438.89 crore. Agri advances stood at Rs 21,090.70 crore, registering a growth of 17.96%. Business banking advances grew by 17.20% to Rs 13,617.35 crore. Commercial banking jumped 18.61% to Rs 16,240 crore. Corporate advances surged 20.70% to Rs 58,928.90 crore from Rs 48,822.63 crore posted in the same period last year.

Return on assets (ROA) for Q2 FY23 improved to 1.21% as against 0.92% in Q2 FY22. Return on equity (ROE) increased to 14.36% in the quarter ended 30 September 2022 as compared to 10.73% in the corresponding quarter previous year.

Commenting on the results, Shyam Srinivasan, managing director & CEO said, “This has been our strongest quarter till date with very good growth across all key parameters. Strong business momentum has aided meaningful gains in market share. We have delivered the highest ever net profit with ₹ 704 Cr, ROA and ROE are in the right trajectory and the asset quality of the Bank continues to be strong at 2.46% and 0.78%. Credit costs are well controlled at 53 bps. We are encouraged by this and are working to ensure that the trend continues.”

Federal Bank operates through four segments: treasury, corporate or wholesale banking, retail banking and other banking operations. The Bank has 1305 branches, 1876 ATMs/ Recyclers as on 30 September 2022.

The scrip hit an all time high of Rs 132.10 in intraday today.