MUMBAI, 15 JULY, 2022 (GPN): Federal Bank announced its unaudited financial results for the quarter ended 30th June 2022 today.

Highlights

• Net Profit of 601 Cr, grew by 64% YoY
• ROA at 1.10% and ROE at 12.70%
• CASA grew by 15% YoY and CASA Ratio at 36.84%
• Core Fee Income of ₹441 Cr, increase of 73% YoY
• GNPA and NNPA brought down to 2.69% and 0.94% respectively
• Agri Business grew by 19% YoY
• Business Banking grew by 18% & Commercial Banking grew by 20% YoY
• Market Share in Personal Inward remittance business at 21.06% (FY22)

Commenting on the results, Mr. Shyam Srinivasan, Managing Director & CEO, said, “Our financial performance for Q1 FY23 has been very encouraging and reflects the all-round progress we have been making over time. We have delivered strong broad based credit growth while overall costs have been well managed, resulting in the highest ever profits. We are committed to improving on all key metrics in the period ahead with a range of high-quality offerings backed by a very good CRM capability that we have recently launched.”

Working Results at a Glance

(₹ in Crore)

Particulars	Year on Year
30-06-22	30-06-21	Growth %
Net Interest Income	1605	1418	13%
Total Income	4081	4004	2%
Gross NPA	2.69	3.50	-81 bps
Net NPA	0.94	1.23	-29 bps
Net Profit	601	367	64%

OPERATING REVIEW

Total Business

The total business of the Bank reached ₹ 3,35,045 Cr as on 30th June 2022 from ₹ 2,99,158 Cr as on 30th June 2021, registering a growth of 12%.

Credit Growth

Gross Advances reached ₹ 1,54,392 Cr as on 30th June 2022 from ₹ 1,32,787 Cr as on 30th June 2021 registering a growth of 16%. Agri Advances registered a growth of 19% to reach ₹19,988 Cr from ₹16,827 Cr. Business Banking Advances registered a growth of 18% to reach ₹ 12,799 Cr. Commercial Banking Advances registered a growth of 20% to reach ₹ 15,349 Cr.

Deposit Growth

Deposits recorded a growth of 8% to reach ₹ 1,83,355 Cr as on 30th June 2022 from ₹ 1,69,393 Cr as on 30th June 2021. The CASA deposits reached ₹ 67,540 Cr. CASA Ratio stands at 36.84%. Resident Savings Bank deposit registered a growth of 19% to reach ₹ 31,102 Cr as on 30th June 2022.

Operating Profit & Net Profit

The Bank delivered an operating profit of ₹ 973 Cr as on 30th June 2022. The net profit is at ₹601 Cr as on 30th June 2022 up from ₹ 367 Cr as on 30th June 2021.

Income & Margins

Net Interest Income increased from ₹1,418 Cr to ₹1,605 Cr registering a growth of 13% as on 30th June 2022. Net Interest Margin stood at 3.22% for FY23.

Asset Quality

The Gross NPA of the Bank as on 30th June 2022 stood at ₹ 4,155 Cr. Gross NPA as a percentage to Gross Advances is 2.69%. The Net NPA stood at ₹ 1,420 Cr and Net NPA percentage is at 0.94% as on 30th June 2022. The Provision Coverage Ratio stood at 65.03% and after including technical write off at 80.66%.

Capital Adequacy & Net worth

The Capital Adequacy Ratio (CRAR) of the Bank, computed as per Basel III guidelines, stood at 14.57% as on 30th June 2022. The Net Worth of the Bank was at ₹ 19,267 Cr.

Footprint

The Bank has 1291 branches, 1860 ATMs/ Recyclers as on 30th June 2022. The Bank also has its Representative Offices at Abu Dhabi and Dubai and an IFSC Banking Unit (IBU) in Gujarat International Finance Tec-City (GIFT City). The Bank opened 10 new branches in a day during Q1FY23

Major Financial Indicators (Standalone Nos.)

(₹ in Cr)

Business Figures	As on 30.06.2022	As on 30.06.2021	Growth (%)
Total Deposits	183355	169393	8%
CASA	67540	58959	15%
Gross Advances	154392	132787	16%
Retail Advances	49872	43606	14%
Agri Advances	19988	16827	19%
Business Banking Advances	12799	10846	18%
Gross NPA (%)	2.69%	3.50%
Net NPA (%)	0.94%	1.23%
Capital
Equity Capital	421	399
Net Worth	19267	16479	17%
Capital Adequacy (%)	14.57%	14.64%
Tier I (%)	13.31%	13.87%
Tier II (%)	1.26%	0.77%

1.The above Consolidated Financial Results for the quarter ended June 30, 2022 were reviewed by the Audit Committee and
subsequently approved by the Board of Directors at its meeting held on July 15, 2022. These Results have been subjected to
limited review by the Statutory Central Auditors of the Bank and an unqualified review report has been issued.
2.The Consolidated Financial Results of the Group comprise the financial results of The Federal Bank Limited and its subsidiaries viz. Fedbank Financial Services Limited & Federal Operations and Services Limited and its associates viz. Ageas Federal Life Insurance Company Limited & Equirus Capital Private Limited.
3.There has been no material change in the accounting policies adopted during the quarter ended June 30, 2022 as compared
to those followed for the year ended March 31, 2022.
4.The financial results have been arrived at after considering provision for standard assets (including requirements for
exposures to entities with unhedged foreign currency exposures), provision for non-performing assets (NPAs), provision for
non-performing investments, provision for income-tax and other usual and necessary provisions.
5.Other income includes fees earned from providing services to customers,commission from non-fund-based banking activities, earnings from foreign exchange and derivative transactions, selling of third-party products, profit on sale of investments (net), profit / loss on revaluation of investments, dividend received from subsidiaries / associates, recoveries
from advances written off, etc.

6.The Capital Adequacy Ratio is computed on the basis of RBI guidelines applicable on the relevant reporting dates and the
ratio for the corresponding previous period is not adjusted to consider the impact of subsequent changes if any, in the
guidelines.
7.As per extant RBI guidelines, banks are required to make Pillar 3 disclosures including leverage ratio , liquidity coverage
ratio and Net Stable Funding Ratio (NSFR) under the Basel III framework. Accordingly, such applicable disclosures have
been placed on the website of the Bank which can be accessed at the following link:
https://www.federalbank.co.in/regulatory-disclosures. These disclosures have not been subjected to audit or review by the
Statutory Central Auditors of the Bank.

8.As permitted vide letter dated October 04, 2021 issued by RBI, during the quarter ended September 30, 2021 the Bank had
opted to amortise the liability on account of revision in family pension for employees covered under the 11th Bipartite
Settlement and Joint Note dated November 11, 2020, over a period not exceeding five years beginning with the financial
year ended March 31, 2022, subject to 1/5 of the liability being expensed every financial year. Accordingly, during the nine
months ended December 31, 2021, the Bank had charged 2,364.21 Lakhs to the Profit and Loss account and the balance
unamortised expenditure amounting to 15,367.34 Lakhs was carried forward. During the quarter ended March 31, 2022,
the bank had charged the entire balance unamortised family pension expenditure of 15,367.34 lakhs to the Profit and Loss
Account.
9.The figures for the quarter ended March 31, 2022 are the balancing figures between audited figures in respect of the financial year 2021-22 and the published year to date figures upto December 31, 2021, which were subjected to limited review.

10. As per RBI Circular DOR.AUT.REC.12/ 22.01.001/2022-23 dated April 07, 2022, for the purpose of disclosure under Accounting Standard 17, Segment reporting, ‘Digital Banking’ has been identified as a sub-segment under Retail Banking by Reserve Bank of India (RBI). However, as the proposed Digital Banking Unit (DBU) of the Bank has not yet commenced operations and having regard to the discussions of the DBU Working Group formed by Indian Banks’ Association (IBA) (which included representatives of banks and RBI), held on July 14, 2022, reporting of the Digital Banking as a separate sub-segment in the Segment reporting will be done from the quarter ending September 30, 2022.
11.Previous period’s figures have been regrouped / reclassified, where necessary to conform to current period’s classification
and also the amounts / ratios for the previous period have been regrouped / reclassified pursuant to the requirements of
Master Direction on financial statements – Presentation and disclosures issued by Reserve Bank of India dated August 30,
2021, as amended and wherever considered necessary.- Ends.