Federal Bank announced Unaudited Financial Results for the quarter ended 31st December 2021. Major highlights of the results on a Y-o-Y basis are as follows:
- Total advances grew by 12% YoY
- Market share in Personal Inward remittance business at 19.23%
- CASA grew by 15% YoY, CASA ratio at an all-time high of 36.68%
- Total business grew by 10% YoY
- GNPA @ 3.06% & NNPA @ 1.05%
- NIM improved sequentially by 7 bps, and stood at 3.27%
- Operating profit for Q3 at Rs. 914 Cr
- ROA for Q3 at 1.02% and ROE at 11.62%
Commenting on the results, Mr. Shyam Srinivasan, MD & CEO, said, “We are pleased to continue our strong performance with improvement across all parameters. Credit quality remains top quartile on the back of disciplined lending practices. The Bank has delivered strong bottom line with key gains in Net Interest Income, Fee Income and Net Interest Margin. Net Profit improved substantially registering a growth of 29% and it helped deliver RoA of 1%+”
Q3FY21 Vs Q3FY22
- Agri Advances registered growth of 17.95% to reach Rs. 18431.00 Cr
- Housing Loans registered growth of 13.87% to reach Rs. 21684.96 Cr
- Retail Advances grew 7.91% to reach Rs. 45541.37 Cr
- Gold Loans registered growth of 11.48% to reach Rs. 16378.00 Cr
- CASA registered growth of 15.43% to reach Rs. 64343.28 Cr
- Resident Savings Bank deposit registered growth of 18.16% to reach Rs.28970.01 Cr
- Net worth of the Bank reached Rs.18,087.98 Cr
- Book Value per share increased to Rs. 86.05 from Rs. 78.32
Balance Sheet
Total Business of the Bank grew 10.10% Y-o-Y from Rs. 2,87,174.69 Cr as on 31st December 2020 to Rs. 3,16,174.33 Cr as on 31st December 2021. Net advances recorded a growth of 12.14% to reach Rs. 1,40,742.63 Cr from Rs. 1,25,504.77 Cr as on 31st Dec 2021. Total Deposits reached Rs. 1,75,431.69 Cr from Rs. 1,61,669.92 Cr as on 31st Dec 2021.
Operating Profit & Net Profit
Net Profit for the quarter increased to Rs. 521.73 Cr compared to Rs. 404.10 Cr as on 31st Dec 2021. The Bank recorded an Operating Profit of Rs. 914.29 Cr as on 31st Dec 2021 down from Rs. 956.44 Cr an year earlier.
Income & Margins
Net Interest Income of the Bank increased to Rs.1538.90 Cr as on 31st Dec 2021 from Rs. 1437.04 Cr as on 31st Dec 2020. Core fee income has registered a growth of 15.47% to reach Rs. 412.03 Cr. The Net Interest Margin of the Bank during quarter ended 31st December 2021 stood at 3.27%.
Asset Quality
Gross NPA and Net NPA of the Bank as at the end of the Quarter stood at Rs. 4401.26 Cr and Rs. 1471.18 Cr respectively. Gross NPA as a percentage stands at 3.06% and Net NPA as a percentage stands at 1.05% , improving sequentially. Provision Coverage Ratio stands at 79.62% compared to 86.32% an year earlier.
NET WORTH & CAPITAL ADEQUACY
Net worth of the Bank increased to Rs.18087.98 Cr as on 31st December 2021 from Rs.15631.15 Cr as on 31st December 2020. Capital Adequacy Ratio (CRAR) of the Bank, computed as per Basel III guidelines stood at 14.37% as at the end of the quarter.
Footprint
The Bank has 1274 branches and 1882 ATMs/Recyclers as on 31st December 2021.
MAJOR FINANCIAL INDICATORS (Standalone nos.)
(Rs. in Crore)
| Business Figures | As on 31.12.2021 | As on 31.12.2020 | Growth (%) |
| Total Deposits | 1,75,431.69 | 1,61,669.92 | é8.51% |
| CASA | 64,343.28 | 55,740.05 | é15.43% |
| Net Advances | 1,40,742.63 | 1,25,504.77 | é12.14% |
| Retail Advances | 45,541.37 | 42,202.56 | é7.91% |
| Agri Advances | 18,431.00 | 15,626.00 | é17.95% |
| Capital | |||
| Equity Capital | 420.41 | 399.17 | |
| Net Worth | 18,087.98 | 15,631.15 | é15.72% |
| Capital Adequacy (%) | 14.37% | 14.31% | |
| Tier I (%) | 13.52% | 13.00% | |
| Tier II (%) | 0.85% | 1.31% |