After the lender reported strong profit growth, an improvement in asset quality, and a sequential fall in net interest margin (NIM), the lender's shares fell by more than 7% in Friday's trade. For the March quarter, Federal Bank reported a record profit of Rs 902.61 crore, an increase of 66.98% YoY. In the comparable quarter of the previous year, the bank had reported a profit of Rs 540.54 crore.
According to Federal Bank, the company's net interest income (NII) increased by 25.18 percent year over year to Rs 1,909.29 crore from Rs 1,525.21 crore in the preceding quarter. The quarter's net interest margin (NIM) was 3.31 percent, down from 3.49 percent in December and 3.16 percent in the previous quarter.
On the BSE, shares of Federal Bank fell 7% following the announcement of the results to Rs 129.35. According to shareholding data, as of March 31, the Jhunjhunwala family owned approximately 3.5% of this bank.
According to a Federal Bank filing, gross non-performing assets (NPAs) as a percentage of total advances for the quarter were 2.35 percent, compared to 2.42 percent in the December quarter and 2.78 percent in the previous quarter. According to a BSE filing, total advances increased by 20.14 percent year over year, while total deposits increased by 17% year over year.
The CEO and managing director of the company, Shyam Srinivasan, stated: We have presented industry-leading results, with a net benefit of Rs. 903 crores and an ROE of 17.48 percent an unsurpassed high." "The consistent performance exhibited throughout the year has yielded net annual profits of Rs 3,010.59 crore while maintaining benign asset quality across the segments," he stated.
According to Srinivasan, the bank's gains in market share across product categories are gaining momentum. For FY23, the board of directors of the bank has recommended a final dividend of Re 1 per equity share with a face value of Rs 2.
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