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Business News/ Companies / Company Results/  Federal Bank Q3 net profit rises 54%, asset quality improves
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Federal Bank Q3 net profit rises 54%, asset quality improves

Federal Bank shares were trading nearly a per cent higher at ₹139 apiece on the BSE in afternoon deals

Federal Bank LtdPremium
Federal Bank Ltd

Federal Bank on Monday reported its standalone net profit at 803.6 crore during the third quarter ended December 2022 for the current fiscal or Q2 FY23, up 54% as compared to 521.7 crore in the same quarter in the previous fiscal. Shares of Federal Bank were trading nearly a per cent higher at 139 apiece on the BSE in afternoon deals.

Federal Bank said it reported highest ever net profit at 803.6 crore whereas it posted a highest ever operating profit at 1274.21Cr, witnessing a growth of 39% from the year ago quarter.

The lender's net interest income (NII), which is the difference between the interest earned and expended, rose 27% to 1,956 crore as compared to 1,539 crore year-on-year (YoY). Its provisions (other than tax) and contingencies slipped to 198.7 crore versus 267.8 crore QoQ and from 213.9 crore YoY. Its Provision Coverage Ratio (PCR) was up by 178 bps to 69.19%.

Meanwhile, its asset quality during the quarter under review improved slightly as gross non-performing assets (NPAs) stood at 2.43% from 2.46% quarter-on-quarter (QoQ) whereas net NPAs came down to 0.73% from 0.78% in the previous quarter of September 2022. As per the lender, the GNPA at 2.43% was the lowest in 21 quarters, whereas its net NPA at 0.73% was the lowest in 8 quarters.

Further, Federal Bank's net interest margin or NIM rose to 3.49% during the December 2022 quarter, higher by 22 basis points (bps) YoY and 19 bps QoQ. Its loan growth was at 4.3% QoQ 17.1% from the year ago quarter.

Earlier this month, Federal Bank had said that its total deposits crossed 2,00,000 crore milestone, reaching 2,01,425 crore, with a growth of 14.8% over 1,75,432 crore as of December 31, 2021.

 

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Published: 16 Jan 2023, 12:43 PM IST
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