NEW DELHI: Private sector lender Federal Bank on Monday announced its highest-ever net profit of Rs 803.61 crore during the quarter ending December 2022, showing a rise of 54% compared to Rs 521.7 crore for the quarter a year ago.
Net interest income, which is the difference between interest earned and interest paid, for the quarter grew 27.14% to Rs 1,956.53 crore from 1,538.9 crore in the quarter ending December 2021. Other income of the bank grew 10.29% to Rs 534 crore from Rs 484.19 crore for the quarter a year ago.
“An all-round strong operating performance has helped us deliver the highest-ever quarterly profit of Rs 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 return on assets (ROA), currently at 1.33%,” said Shyam Srinivasan, managing director & CEO, Federal Bank.
The net interest margin increased by 22 basis points (bps) to 3.49%. Total business of the bank reached Rs 36,9581.25 crore, registering a growth of 16.89% as of December 31, 2022. Total deposits rose from Rs 17,5431.70 crore as of December 31, 2021, to Rs 20,1408.12 crore in Q3FY23. Current account savings account (CASA) deposits grew 7.19% to Rs 68,967.14 crore.
Total advances surged from Rs 14,3638.49 crore as of December 31, 2021, to Rs 17,1043.02 crore as of December 31, 2022. Retail advances grew 18.13% to reach Rs 53,936.45 crore. Gross non-performing assets (NPAs) at the end of Q3FY23 stood at Rs 4,147.85 crore, which as a percentage to gross advances stood at 2.43%.