Federal Bank's Q1 net jumps 64% to Rs 601 cr in best-ever quarterly show

Federal Bank reported a 63.5 per cent increase in net profit in the April-June quarter of FY23. Its net profit rose to Rs 600.66 crore in Q1 compared to Rs 367.29 crore in the year-ago period. This is the highest ever quarterly profit reported by the bank. Shares of Federal Bank jumped over 2 per cent post the Q1 earnings and were trading at Rs 99.35. We have delivered strong broad-based credit growth while overall costs have been well managed, resulting in the highest ever profits,” said Shyam Srinivasan, MD&CEO, Federal Bank. The difference between interest earned and expended of the Federal Bank, rose 13.1 per cent to Rs 1,604.5 crore in Q1 FY23. But other income was down 30.2 per cent year on year (YoY) to Rs 453 crore. Net interest margin, a measure of profitability, stood at 3.22 per cent

  Provisions and contingencies of the lender fell by 74 per cent YoY to Rs 166.68 crore in Q1 but sequentially it more than doubled. At the end of the June quarter, asset quality improved as gross non-performing assets (NPAs) fell by 11 basis points sequentially to 2.69 per cent. The loan book of Federal Bank grew 16 per cent YoY to Rs 1.54 trillion, retail grew 14 per cent, auto loans grew 24 per cent, and gold loans ggrew17 per cent. On the other hand, deposits grew by 8 per cent YoY to Rs 1.83 trillion. The current and savings account (CASA) deposits reached Rs 67,540 crore and the CASA ratio stands at 36.84 per cent.