Net interest income stood at Rs 1,957 crore in Q3 FY23, up 27.1% over Rs 1,539 crore in the same quarter last year. Net interest margin improved to 3.49% in Q3 FY23 from 3.27% in Q3 FY22.

Provisions and contingencies fell 7.15% to Rs 198.69 crore in Q3 FY23 from Rs 213.98 crore in Q3 FY22. Provision coverage ratio (including technical write-offs) was 83.44%. Credit cost for the quarter stood at 0.38%.

Net worth of the bank increased to Rs 20,456.75 crore from Rs 18,089.19 crore, as on 31 December 2022. Capital adequacy ratio (CRAR) of the bank, computed as per Basel III guidelines stood at 13.35% 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 4,147.85 crore and Rs 1,228.59 crore respectively. Gross NPA as a percentage to gross advances stood at 2.43% and Net NPA percentage is at 0.73% as on 31 December 2022.

Total advances recorded a growth of 19.08% to reach Rs 1,71,043.02 crore from Rs 1,43,638.49 crore posted on 31 December 2022. Total deposits reached Rs 2,01,408.12 crore from Rs 1,75,431.70 crore as on 31 December 2022.

The CASA deposits grew 7.19% YoY to Rs 68,967.14 crore in Q3 FY23 and CASA Ratio slipped to 34.24% in Q3 FY23 from 36.68% posted in Q3 FY22.

During the quarter, retail advances grew by 18.13% to reach Rs 53,936.45 crore. Agri advances stood at Rs 22,050 crore, registering a growth of 19.70%. Business banking advances grew by 18.03% to Rs 14,238.36 crore. Commercial banking jumped 18.40% to Rs 16,794.70 crore. Corporate advances surged 19.13% to Rs 62,182.66 crore from Rs 52,197.97 crore posted in the same period last year.

Return on assets (ROA) for Q3 FY23 improved to 1.33% as against 1.02% in Q3 FY22. Return on equity (ROE) increased to 15.91% in the quarter ended 31 December 2022 as compared to 11.62% in the corresponding quarter previous year.

Commenting on the results, Shyam Srinivasan, managing director & CEO said, “An all-round strong operating performance has helped us deliver the highest ever quarterly profit of 804 crore. Credit cost has improved on the back of continued strong asset quality, with GNPA and NNPA at 2.43% and 0.73% respectively. Broad based asset growth of 19%, coupled with core revenue profile has yielded in higher ROA, currently at 1.33%.”

Federal Bank operates through four segments: treasury, corporate or wholesale banking, retail banking and other banking operations. The bank has 1333 branches and 1894 ATMs/recyclers as on 31 December 2022.