|
Federal Bank recorded sharp 29% growth in the
net profit to Rs 521.73 crore in the quarter ended December 2021 (Q3FY2022),
driven by improvement in margins, healthy growth in core fee income, consistent
improvement in asset quality and acceleration in loan growth. The Net Interest
Margins (NIMs) of the bank has improved to 3.27% in Q3FY2022 supporting the
growth in Net Interest Income (NII). Bank has also posted 16% growth in the
core fee income in Q3FY2022. The advances growth of the bank accelerated to 12%
end December 2021, while bank exhibited improvement in the asset quality in
Q3FY2022.
Asset
quality improves: Asset quality of the
bank improved, in absolute terms as well as percentage terms in Q3FY2022.
Gross NPA has declined 1% on qoq basis to Rs
4401.26 crore, while Net NPA also declined 2% on qoq to Rs 1471.18 crore at end
December 2021.
GNPA ratio declined to 3.06% and NNPA ratio fell
to 1.05% end December 2021.
Fresh slippages of advances were higher at Rs
442 crore in Q3FY2022, while recoveries, upgradations, write-offs and NPA sales
were ahead at Rs 498 crore.
Fresh additions to GNPA were contributed by
retail segment at Rs 95 crore followed by agriculture at Rs 103 crore, business
banking at Rs 84 crore, commercial banking at Rs 110 crore and corporate at Rs
50 crore in Q3FY2022.
The standard restructured advances book of the
bank stood at Rs 3723 crore at end December 2021, compared with Rs 3553 crore a
quarter ago and Rs 1129 crore a year ago.
Provision coverage ratio rose to 65.8% at end
December 2021 compared to 65.4% a quarter ago, while eased from 77.1% a year
ago.
|
Asset Quality
Indicators: Federal Bank
|
|
|
Dec-21
|
Sep-21
|
Jun-21
|
Mar-21
|
Dec-20
|
Variation
|
|
QoQ
|
YTD
|
YoY
|
|
Gross NPA (Rs Crore)
|
4401.26
|
4445.84
|
4649.33
|
4602.39
|
3470.18
|
-1
|
-4
|
27
|
|
Net NPA (Rs Crore)
|
1471.18
|
1502.44
|
1593.24
|
1569.28
|
757.24
|
-2
|
-6
|
94
|
|
% Gross NPA
|
3.06
|
3.24
|
3.50
|
3.41
|
2.71
|
-18
|
-35
|
35
|
|
% Net NPA
|
1.05
|
1.12
|
1.23
|
1.19
|
0.60
|
-7
|
-14
|
45
|
|
% PCR
|
65.80
|
65.43
|
65.00
|
65.14
|
77.10
|
37
|
66
|
-1130
|
|
% CRAR - Basel III
|
14.37
|
14.97
|
14.64
|
14.62
|
14.31
|
-60
|
-25
|
6
|
|
% CRAR - Tier I -
Basel III
|
13.52
|
14.09
|
13.87
|
13.85
|
13.00
|
-57
|
-33
|
52
|
|
Variation in basis
points for figures given in percentages and in % for figures in Rs crore
|
Business
Highlights:
Business
growth steady: Business growth of the
bank was steady at 10% yoy to Rs 316175 crore at end December 2021. The
business growth was mainly driven by acceleration in advances growth to 12% yoy
at Rs 140743 crore at end December 2021, while the deposits growth eased marginally
to 9% at Rs 175432 crore at end December 2021. The bank has improved
credit-deposit ratio to 80.2% end December 2021 from 78.1% quarter ago and
77.6% a year ago.
Strong
corporate loan book growth:
Gross advances book increased 12% yoy to Rs 143638 crore at end December 2021,
as the retail book moved up 8% to Rs 45541 crore, while agriculture loan book
increased 18% to Rs 18431 crore and business banking book expanded 11% to Rs
13104 crore at end December 2021. The commercial banking book moved up 12% to
Rs 14339 crore and corporate banking book jumped 14% to Rs 52223 crore end
December 2021.
Within the retail book, the mortgages jumped 10%
to Rs 8263 crore at end December 2021 from Rs 7489 crore at end December 2020.
Housing increased 14% to Rs 21685 crore, auto 21% to Rs 4035 crore, personal 2%
to Rs 1746 crore, while other retail advances declined 8% to Rs 9812 crore at
end December 2021. Gold loans increased 11% to Rs 16378 crore, which carries
yield of 11.19%. The gold tonnage rose to 50.82 tonnes end December 2021.
CASA
ratio improves: CASA deposits of the
bank increased 15% at Rs 64343 crore gaining the share in overall deposits to 36.7% at end
December 2021 compared to 34.5% a year ago. Within the CASA, the saving
deposits increased at strong pace of 14% to Rs 53014 crore, while current
account deposits also galloped 24% to Rs 11330 crore at end December 2021.
Retail Deposits Ratio was steady at 93.7% from 93.7% sequentially.
Network
expansion: Bank expanded its
footprint and added 2 branches and 8 ATMs during the quarter to take the tally
to 1274 branches and 1882 ATMs at end December 2021.
Book
Value per share stood at Rs
86.8 per share at end December 2021, while adjusted Book value (adjusting for
NNPA and 10% of restructured advances) was at Rs 78.1 per share at end December
2021.
Quarterly Performance:
NII
rises on improving NIMs: Bank
has reported 7% growth in Net Interest Income (NII) at Rs 1538.90 crore for the
quarter ended December 2021. The interest earned was flat at Rs 3442.56 crore,
while interest expenses declined 6% to Rs 1903.66 crore in the quarter ended
December 2021.
Non-interest
income rises on healthy growth in fee income: The non-interest income of the bank increased 2% to Rs 484.19
crore in Q3FY2022. Core fee income of the bank surged 16% to Rs 362 crore,
while treasury income declined 39% to Rs 72 crore in Q3FY2022. Forex income moved
up 11% to Rs 50 crore in Q3FY2022.
Net total income increased 6% to Rs 2023.09
crore in the quarter ended December 2021.
Expense
ratio jumps: The operating expenses
of the bank surged 16% to Rs 1108.80 crore in the quarter ended December 2021.
Thus, the expense ratio moved up 482 bps yoy to 54.8% in the quarter ended
December 2021, causing 4% dip in the operating profit to Rs 914.29 crore in
Q3FY2022.
Provisions
decline: The provisions and
contingencies dipped 48% to Rs 178.58 crore in the quarter under review.
With the dip in provisions, PBT galloped 29% to
Rs 700.31 crore. The effective tax rate was flat at 25.5% in Q3FY2022 compared
to 25.5% in Q4FY2020. Net Profit increased 29% to Rs 521.73 crore in the
quarter ended December 2021.
Financial Performance 9MFY2022:
For the year ended December 2021 (9MFY2022),
Bank posted 21% increase in the net profit at Rs 1349.28 crore. The net interest
income rose 8% to Rs 4436.75 crore, while non-interest income moved up 10% to
Rs 1624.09 crore in 9MFY2022. The operating expenses increased 15% to Rs
3101.19 crore, while provision and contingencies declined 19% to Rs 1146.53
crore in 9MFY2022. The profit before tax increased 21% to Rs 1813.12 crore in
9MFY2022. The expense ratio moved up 307 bps to 51.2% in 9MFY2022 compared to
48.1% in 9MFY2021. After considering 25.6% of effective tax rate, the net
profit galloped 21% to Rs 1349.28 crore in 9MFY2022.
|
Federal Bank: Results
|
|
Particulars
|
2112 (3)
|
2012 (3)
|
Var %
|
2112 (9)
|
2012 (9)
|
Var %
|
2103 (12)
|
2003 (12)
|
Var %
|
|
Interest Earned
|
3442.56
|
3459.52
|
0
|
10177.52
|
10391.57
|
-2
|
13757.91
|
13210.75
|
4
|
|
Interest Expended
|
1903.66
|
2022.48
|
-6
|
5740.77
|
6278.24
|
-9
|
8224.20
|
8561.85
|
-4
|
|
Net Interest Income
|
1538.90
|
1437.04
|
7
|
4436.75
|
4113.33
|
8
|
5533.71
|
4648.90
|
19
|
|
Other Income
|
484.19
|
475.38
|
2
|
1624.09
|
1481.17
|
10
|
1958.70
|
1931.41
|
1
|
|
Net Total Income
|
2023.09
|
1912.42
|
6
|
6060.84
|
5594.50
|
8
|
7492.41
|
6580.31
|
14
|
|
Operating Expenses
|
1108.80
|
955.98
|
16
|
3101.19
|
2691.06
|
15
|
3691.72
|
3375.61
|
9
|
|
Operating Profits
|
914.29
|
956.44
|
-4
|
2959.65
|
2903.44
|
2
|
3800.69
|
3204.70
|
19
|
|
Provisions &
Contingencies
|
213.98
|
414.16
|
-48
|
1146.53
|
1408.93
|
-19
|
1663.42
|
1172.17
|
42
|
|
Profit Before Tax
|
700.31
|
542.28
|
29
|
1813.12
|
1494.51
|
21
|
2137.27
|
2032.53
|
5
|
|
Provision for tax
|
178.58
|
138.18
|
29
|
463.84
|
382.02
|
21
|
546.97
|
489.75
|
12
|
|
PAT
|
521.73
|
404.10
|
29
|
1349.28
|
1112.49
|
21
|
1590.30
|
1542.78
|
3
|
|
EPS*(Rs)
|
9.9
|
7.7
|
|
8.6
|
7.1
|
|
7.6
|
7.3
|
|
|
* Annualized on current equity of
Rs 420.43 crore. Face Value: Rs 2, Figures in Rs crore
|
|
Source: Capitaline Corporate
Database
|
|