|
Federal Bank has reported 25% growth
in net profit at Rs 1006.74 crore for the quarter ended December 2023
(Q3FY2024). The bank has posted moderate 9% growth in net interest income
(NII), while the core fee income of the bank has surged 26% in Q3FY2024. The
Net Interest Margin (NIM) of the bank was steady on sequential quarter basis at
3.19% in Q3FY2024, while eased from 3.55% in the corresponding quarter of
previous year.
On business front, the bank as has
posted strong 20% growth in business with healthy 21% surge in loan book. The
asset quality of the bank was stable in Q3FY2024, but the fresh slippages of
loans was elevated. Bank has substantially improved the credit to deposit ratio
to 86.4% at end December 2023 from 85.1% at end December 2022. However, the
CASA ratio of the bank has declined to 30.6% at end December 2023 from 34.2% at
end December 2022.
Asset quality stable: The bank has maintained stable asset
quality, but the fresh slippages of loan increased in Q3FY2024.
The fresh slippages of increased to
Rs 496 crore in Q3FY2024 compared with 373 crore in previous quarter and Rs 412
crore in the corresponding quarter last year.
The recoveries and upgradations of
NPAs stood at Rs 290 crore, while the write-off of loans was at Rs 13 crore in
Q3FY2024.
The standard restructured loan book
of the bank eased to Rs 2280 crore end December 2023.
Provision coverage ratio was steady
at 71.08% at end December 2023 compared to 71.03% a quarter ago and 69.19% a
year ago.
The capital adequacy ratio of the
bank stood at 15.0% with Tier I ratio at 13.5% at end December 2023.
The risk weighted assets of the bank
increased 25% to Rs 181073 crore end December 2023.
|
Asset Quality
Indicators: Federal Bank
|
|
|
Dec-23
|
Sep-23
|
Jun-23
|
Mar-23
|
Dec-22
|
Variation
|
|
QoQ
|
YTD
|
YoY
|
|
Gross NPA (Rs Crore)
|
4628.79
|
4436.05
|
4434.77
|
4183.77
|
4147.85
|
4
|
11
|
12
|
|
Net NPA (Rs Crore)
|
1284.37
|
1229.81
|
1274.59
|
1205.01
|
1228.59
|
4
|
7
|
5
|
|
% Gross NPA
|
2.29
|
2.26
|
2.38
|
2.36
|
2.43
|
3
|
-7
|
-14
|
|
% Net NPA
|
0.64
|
0.64
|
0.69
|
0.69
|
0.73
|
0
|
-5
|
-9
|
|
% PCR
|
71.08
|
71.03
|
70.02
|
70.02
|
69.19
|
5
|
106
|
189
|
|
% CRAR - Basel III
|
15.02
|
15.50
|
14.28
|
14.81
|
13.35
|
-48
|
21
|
167
|
|
% CRAR - Tier I -
Basel III
|
13.48
|
13.79
|
12.54
|
13.02
|
12.13
|
-31
|
46
|
135
|
|
Variation in basis
points for figures given in percentages and in % for figures in Rs crore
|
Business Highlights:
Healthy business growth: The business of the bank has
increased 20% YoY to Rs 446522 crore end December 2023, driven by 21% surge in
advances to Rs 206931 crore. Deposits rose 19% to Rs 239591 crore at end
December 2023.
CASA deposits ratio eases: The CASA deposits of the bank rose
6% YoY to Rs 73389 crore at end December 2023. The current account deposits
increased 20% to Rs 15713 crore, while saving account deposits rose 2% to Rs
56876 crore end December 2023. The CASA ratio eased to 30.6% at end December
2023 compared to 34.2% at end December 2022 and 31.2% end September 2023. The
term deposits have increased 33% to Rs 166202 crore end December 2023.
Strong loan growth: Advances growth was driven by retail
loans rising 20% YoY to Rs 65041 crore at end December 2023, while credit to
agriculture increased 27% to Rs 26647 crore and MSME 32% to Rs 22491 crore at
end December 2023. The corporate credit has moved up 17% to Rs 92752 crore end
December 2023.
Investment
book of the bank jumped 24% YoY to Rs
57373 crore at end December 2023.
Margins steady on sequential basis: The bank has witnessed 116 bps YoY
increase in cost of deposits to 5.73%, while yield on advances moved up 59 bps
YoY to 9.37% in Q3FY2024. Thus, the NIM has declined -36 bps YoY to 3.19%,
while remained nearly steady from 3.22% in Q2FY2024.
Branch expansion: The bank has added 29 branches and
25 ATMs in Q3FY2024, taking overall tally to 1418 branches and 1962 ATM`s end
December 2023. The client base of the bank rose to 1.76 crore end December
2023.
Book value of the bank stood at Rs 119.6 per
share at end December 2023, while the adjusted book value (net of NNPA and 10%
of restructured advances) was Rs 113.4 per share at end December 2023.
Quarterly Performance
NII growth moderate as NIM eases: Bank has recorded 29% increase in
the interest earned at Rs 5730.10 crore, while interest expenses surged 46% to
Rs 3606.74 crore in Q3FY2024. NII improved 9% to Rs 2123.36 crore in the
quarter ended December 2023.
Healthy growth in the core fee
income: Bank has posted
strong 26% growth in core fee income to Rs 583 crore, while the treasury income
rebounded to Rs 221 crore leading to 62% jump in the overall non-interest
income to Rs 862.56 crore in the quarter ended December 2023.
Expenses ratio rises: The operating expenses of the bank
increased 27% to Rs 1548.59 crore, as other expenses moved up 31% to Rs 855.44
crore, while employee expenses increased 24% to Rs 693.15 crore in Q3FY2024.
Cost to income ratio rose to 51.9% in Q3FY2024 compared with 48.8% in Q3FY2023.
Operating Profit increased 13% to Rs 1437.33 crore.
Provisions and contingencies
decline: The bank has
showed -54% decline in provisions to Rs 91.22 crore. The loan loss provisions
declined -4% to Rs 151 crore, while the bank has written back investment
provisions of Rs 10 crore and standard asset provisions of Rs 112 crore. Other
provisions surged 629% to Rs 62 crore.
Effective tax rate declined
to 25.2% in
Q3FY2024 from 25.3% in Q3FY2023. Net Profit rose by 25% YoY to Rs 1006.74 crore
during quarter ended December 2023.
Financial Performance 9MFY2024:
Bank has posted 34% increase in net
profit to Rs 2814.30 crore in the nine months December 2023 (9MFY2024). The net
interest income increased 15% to Rs 6098.37 crore, while non-interest income moved
up 46% to Rs 2325.39 crore, pushing up net total income by 22% to Rs 8423.76
crore in 9MFY2024. The operating expenses increased 26% to Rs 4359.63 crore.
The provision and contingencies dipped 54% to Rs 290.70 crore, allowing profit
before tax to increase 33% to Rs 3773.43 crore in 9MFY2024. The cost-to-income
ratio rose to 51.8% in 9MFY2024 compared to 50.0% in 9MFY2023. An effective tax
rate was steady at 25.4% in 9MFY2024 compared to 25.4% in 9MFY2023. The net profit
has increased 34% to Rs 2814.30 crore in 9MFY2024.
|
Federal Bank: Results
|
|
Particulars
|
2312 (3)
|
2212 (3)
|
Var %
|
2312 (9)
|
2212 (9)
|
Var %
|
2303 (12)
|
2203 (12)
|
Var %
|
|
Interest Earned
|
5730.10
|
4433.25
|
29
|
16209.91
|
12082.89
|
34
|
16803.63
|
13660.76
|
23
|
|
Interest Expended
|
3606.74
|
2476.72
|
46
|
10111.54
|
6760.02
|
50
|
9571.47
|
7698.80
|
24
|
|
Net Interest Income
|
2123.36
|
1956.53
|
9
|
6098.37
|
5322.87
|
15
|
7232.16
|
5961.96
|
21
|
|
Other Income
|
862.56
|
534.00
|
62
|
2325.39
|
1596.14
|
46
|
2330.00
|
2089.09
|
12
|
|
Net Total Income
|
2985.92
|
2490.53
|
20
|
8423.76
|
6919.01
|
22
|
9562.16
|
8051.05
|
19
|
|
Operating Expenses
|
1548.59
|
1216.32
|
27
|
4359.63
|
3459.19
|
26
|
4767.77
|
4293.20
|
11
|
|
Operating Profits
|
1437.33
|
1274.21
|
13
|
4064.13
|
3459.82
|
17
|
4794.39
|
3757.85
|
28
|
|
Provisions &
Contingencies
|
91.22
|
198.69
|
-54
|
290.70
|
633.23
|
-54
|
749.89
|
1221.77
|
-39
|
|
Profit Before Tax
|
1346.11
|
1075.52
|
25
|
3773.43
|
2826.59
|
33
|
4044.50
|
2536.08
|
59
|
|
EO
|
0.00
|
0.00
|
-
|
0.00
|
0.00
|
-
|
0.00
|
0.00
|
-
|
|
PBT after EO
|
1346.11
|
1075.52
|
25
|
3773.43
|
2826.59
|
33
|
4044.50
|
2536.08
|
59
|
|
Provision for tax
|
339.37
|
271.91
|
25
|
959.13
|
718.61
|
33
|
1033.91
|
646.26
|
60
|
|
PAT
|
1006.74
|
803.61
|
25
|
2814.30
|
2107.98
|
34
|
3010.59
|
1889.82
|
59
|
|
EPS*(Rs)
|
16.5
|
13.2
|
|
15.4
|
11.5
|
|
14.2
|
8.9
|
|
|
Adj BV (Rs)
|
113.4
|
90.1
|
|
113.4
|
90.1
|
|
94.6
|
81.1
|
|
|
* Annualized on current equity of
Rs 486.75 crore. Face Value: Rs 2, Figures in Rs crore
|
|
Source: Capitaline Corporate
Database
|
|