BackFederal Bank Q4FY23 results: Net profit jumps 67%, declares final dividend; shares slump over 8%
Federal Bank Q4FY23 results: Net profit jumped by 62.4% to ₹953.91 crore in comparison to the same quarter last year.
PremiumFederal Bank Q4FY23 consolidated net profit jumped by 62.4% to ₹953.91 crore in comparison to the same quarter last year.
For the quarter ended March, the private sector bank posted a consolidated total revenue of ₹5,780.78 crore, up 38.6% from ₹4,170.55 in the corresponding quarter of FY22.
The bank's board for FY23, has recommended paying a final dividend of Re 1 equity share with a face value of ₹2 each (a 50% dividend rate).
On a standalone basis, the net profit rose 67% on year to ₹902.61 crore from ₹540.54 crore. The total income surged 38.2% on year to ₹5,454.60 crore from ₹3,948.24.
Following the results shares of Federal bank slumped over 8% on Friday's trade. According to Rajesh Bhosale - Equity Technical and Derivative Analyst, Angel One, post the quarterly results, the stock has seen weakness and is down more than 7%.
“We may continue to see this weakness in the near term where the next support would be the recent swing lows of 123, as of now one should avoid catching falling knife," added Bhosale.
On Friday, shares of the bank opened at ₹139.90 on the BSE. The stock touched an intraday low of ₹128 and high of ₹140.35 during the day. At 14.56 IST, the stock was trading at ₹128.50, down 7.82%.
The bank’s provisions increased by 55% on-year to ₹116.6 crore from ₹75.24 crore, and down 41.3% sequentially.
The net interest income (NII) for Q4FY23 rose 25.2% on year to ₹1,909.3 crore from ₹1,525.2 crore in Q4FY22.
On sequential basis, the gross NPA was up by 0.9% to ₹4,183.8 crore from 4,147.9 crore. Meanwhile, net NPA for the quarter ended March, fell 1.9% to ₹1,205 crore from ₹1,228.6 crore.
According to an exchange filing, the bank's overall business increased by 18.74% to ₹3,87,832.93 crore as of March 31, 2023 from ₹3,26,628.92 crore as on 31st March 2022.
Deposits increased by 17.44% from ₹1,81,700.59 crore on March 31, 2022, to ₹2,13,386.04 crore on March 31, 2023.
Gross Advances increased by 20.14% to ₹1,77,376.53 crore as of March 31, 2023, from ₹1,47,639.45 crore as on 31st March 2022.
“We have delivered industry leading outcomes with net profit at ₹903 Cr QoQ and ROE at an all-time high at 17.48%. The consistent performance exhibited throughout the year has yielded in net annual profits of ₹3010.59 Cr, while maintaining benign asset quality across the segments. This very strong performance is a testimony to the dedicated efforts of the team and the trust of our customers. It’s noteworthy that our market share gains across product categories is gathering momentum quarters," said Shyam Srinivasan, Managing Director & CEO in a press release.
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