Federal Bank on Thursday reported 42 percent year-on-year (YoY) rise in net profit at Rs 854 crore for first quarter of FY24 as against CNBC-TV18 poll of Rs 837.9 crore. In the first quarter of FY23, the lender had reported net profit at Rs 600.7 crore.

The net interest margin (NIM) advanced by 19.6 percent to Rs 1,918 crore as against Rs 1,604.5 crore in first quarter of FY23.

The gross non-performing asset (NPA) was reported at Rs 4,434.8 crore as against Rs 4,183.8 crore in fourth quarter of FY23.In percentage term, it was 2.38 percent up. The net NPA for first quarter of FY24 stood at Rs 1,274.6 crore versus Rs 1,205 crore in Q4 of FY23. In percentage term, this was 0.69 percent up.

The lender posted treasury consolidated revenue at Rs 764.33 crore. Its corporate/wholesale banking division recorded a revenue of Rs 1636.30 crore. Its retail banking vertical posted revenue at Rs 3645.58 crore while digital banking revenue was at Rs 303.40 crore, and other retail banking operations clocked revenue of Rs 3342.18 crore.

Post earnings, Shyam Srinivasan, CEO at Federal Bank said that bank is now planning fund raise in early part of FY24. Lot of investors have expressed interest and shareholder approval is for Rs 4,000 crore of fund raise, he said.

On NIMs, he said that first half of FY24 could be under some pressure but the same will pick up in the second half. He is expecting it to hover around 3.3 percent in FY24. He is further expecting business growth to sustain at 20 percent.

Federal Bank shares, meanwhile, remained under pressure after the earnings announcement, dropping by as much as Rs 6.1 or 4.5 percent to Rs 128.1 apiece on BSE.

Earlier this month, Federal Bank reported its business update, revealing total deposits of Rs 2,22,513 crore, with a growth of 21.4 percent over Rs 1,83,355 crore as of June 30, 2022. The bank’s customer deposits (total deposits excluding interbank deposits and certificates of deposit) aggregated to Rs 2,10,439 crore, a growth of 17.2 percent over Rs 1,79,586 crore as of June 30, 2022.

The bank’s gross advances grew by 20.9 percent to Rs 1,86,593 crore from Rs 1,54,392 crore as of June 30,2022. As per internal classification, retail credit book grew by 20.2 percent and wholesale credit book grew by 21.6 percent.

First Published:Jul 13, 2023 12:44 PM IST