Federal Bank share price rose over a percent on Monday after the lender reported a strong business, with advances and deposits rising 21% each during the first quarter of fiscal 2023-2024.
The bank’s total deposits grew 21.4% to ₹2,22,513 crore at the end of June 30, 2023, from ₹1,83,355 crore as of June 30, 2022.
Federal Bank's customer deposits (Total deposits excluding Interbank deposits and certificates of deposit) aggregated to ₹2,10,439 crore, a growth of 17.2% over ₹1,79,586 crore as of June 30, 2022, it said in its quarterly business update filed on the exchanges.
The bank’s gross advances as of June 2023 grew by 20.9% to ₹1,86,593 crore from ₹1,54,392 crore, YoY.
Also Read: GHCL-shares-gain-as-shareholders-reject-reappointment-of-sanjay-dalmia-11688355465171.html">GHCL shares gain as shareholders reject reappointment of Sanjay Dalmia
As per internal classification, Retail credit book grew by 20.2% and wholesale credit book grew by 21.6%. Retail to Wholesale ratio is at 54:46 respectively, it said.
Meanwhile, the lender’s CASA ratio, which is the ratio of deposits in current accounts and saving accounts to total deposits, in the June quarter was at 31.85% as compared to 36.84% YoY and versus 32.68% QoQ.
“Federal Bank's provisional numbers were a bit mixed. While retail growth sequentially was a bit higher at 5.5%, wholesale continues to grow. Hence growth in the higher yielding retail pool is the key monitorable which could decide the net interest margin (NIM) trajectory for Q1FY24. Also, bank seems to incrementally rely on wholesale deposit,” said Gaurav Jani - Research Analyst, Prabhudas Lilladher.
Shares of Federal Bank have jumped over 35% in the last one year, but the stock is down more than 8% YTD.
At 9:40 am, the Federal Bank shares were trading 1.19% higher at ₹1127.60 apiece on the BSE.
Catch all the Business News , Corporate news , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.