Metrovaartha-
30
November 2022 - 2:56 am IST

Download Our Mobile App

Flash News
Archives

Money

Federal Bank Sept-quarter net jumps 50% on all-round performance
Federal Bank managing director and chief executive Shyam Srinivasan.

Federal Bank Sept-quarter net jumps 50% on all-round performance

Published:14 October 2022

Federal Bank on Friday reported a 50 per cent jump in its September quarter consolidated net profit at Rs 733.34 crore on the back of healthy growth in both interest and other income streams. The Kerala-based private sector lender posted a 52 per cent jump in standalone net profit at Rs 703.71 crore.

Mumbai | Federal Bank on Friday reported a 50 per cent jump in its September quarter consolidated net profit at Rs 733.34 crore on the back of healthy growth in both interest and other income streams.
The Kerala-based private sector lender posted a 52 per cent jump in standalone net profit at Rs 703.71 crore.
Its managing director and chief executive Shyam Srinivasan told reporters that this was the strongest-ever quarter in the bank's history from a profit perspective, adding that the number came despite an increase in the provisions which the lender did to up its provision coverage ratio (PCR).
The PCR moved up to 67.41 per cent, while the total provisions moved up 12.6 per cent to Rs 506 crore.
The core net interest income rose 19.1 per cent to Rs 1,762 crore, helped by a 20 per cent growth in advances and 0.10 per cent widening in the net interest margin to 3.30 per cent.
Srinivasan said the bank has reviewed up its net interest margin target for the fiscal by a few basis points to the 3.27-3.35 per cent range.
He further said the bank continues to expect the credit growth to come in at high teens, and the deposit growth to be in the early-teens.
Asked about the deposit growth trailing at 10 per cent, Srinivasan said there is a "war for deposits" in the market, but said Federal Bank has more headroom because of the lower credit-deposit ratio.
The bank will depend on its branch network and improved distribution channel consisting of specialised relationship managers for deposit mobilisation, its executive director Shalini Warrier said, making it clear that it will up the deposits "responsibly".
Its other income rose to Rs 610 crore from Rs 492 crore in the year-ago period through what Srinivasan termed was all-round growth across lines.
A faster growth on the income line helped the cost-to-income ratio improve to under 50 per cent for the quarter, Srinivasan said, adding the goal has been achieved one year ahead of the targeted time.
The gross non-performing assets ratio improved to 2.46 per cent as against 3.24 per cent in the year-ago period and 2.69 per cent in the previous quarter.
Srinivasan said the restructured assets are performing much better than expected and the bank is yet to draw down on the high provisions it has made for them.
The bank will look at raising capital sometime in 2023 depending on the asset growth. He, however, declined to comment on speculations around mergers and acquisition activity.
The Federal Bank scrip gained 4.37 per cent to close at Rs 130.25 on the BSE, as against gains of 1.20 per cent on the benchmark.


വാർത്തകൾ

Links

Sign up for Newsletter



Copyright ©
All rights reserved by Metrovaartha.com

Tags

Download Apps

Google Play App Store
  • |
  • |
  • |
  •  

© Copyright Metro vaartha 2022 All rights reserved.

top