MUMBAI, MAY 2023, (GPN): Federal Bank announced its audited financial results for the quarter and year ended 31^st March 2023 .

Highlights:

•      Net Profit at ₹ 903 Cr, grew by 67% YoY •      Highest ever Operating Profit at 1335 Cr, grew by 67% YoY •      ROA for Q4 at 1.45% and ROE at 17.48% •      GNPA and NNPA brought down to 2.36% and 0.69% respectively •      Total Advances increased by 20.14% •      Total Deposits grew 17% YoY •      The Capital Adequacy Ratio (CRAR) of the Bank stood at 14.81%

Commenting on the results and financial performance, Mr. Shyam Srinivasan, Managing Director & CEO, Federal Bank said, “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.”

Working Results at a Glance

(₹ in Crore)

Particulars	Quarter Ended On			Year Ended On
	31-03-23	31-03-22	Growth %	31-03-23	31-03-22	Growth %
Net Profit	902.61	540.54	é66.98	3010.59	1889.82	é59.31
Operating Profit	1334.58	798.20	é67.20	4794.40	3757.85	é27.58
Net interest Income	1909.29	1525.21	é25.18	7232.16	5961.96	é21.31

 

OPERATING REVIEW

Total Business

The total business of the Bank reached ₹ 3,87,832.93 Cr as on 31^st March 2023 from ₹ 3,26,628.92 Cr as on 31^st March 2022, registering a growth of 18.74%.

Credit Growth

Gross Advances reached ₹ 1,77,376.53 Cr as on 31^st March 2023 from ₹ 1,47,639.45 Cr as on 31^st March 2022 registering a growth of 20.14%. Agri Advances registered a growth of 21.46% to reach ₹ 23,355.00 Cr from ₹ 19,227.93 Cr. Corporate Book registered a growth of 23.45% YoY to reach ₹ 64311.34. Commercial Banking Advances registered a growth of 17.91% to reach ₹ 17,274.00 Cr. Retail Advances registered a growth of 17.16% to reach ₹ 56076.86 Cr.

Deposit Growth

Deposits recorded a growth of 17.44% to reach ₹ 2,13,386.04 Cr as on 31^st March 2023 from ₹ 1,81,700.59 Cr as on 31^st March 2022. The CASA deposits reached ₹ 69740.98 Cr as on 31^st March 2023.

Operating Profit & Net Profit

The Bank delivered an annual operating profit of ₹ 4,794.40 Cr as on 31^st March 2023. The annual net profit is at ₹ 3,010.59 Cr as on 31^st March 2023 up from ₹ 1,889.82 Cr as on 31^st March 2022.

Income & Margins

Annual Net Interest Income increased from ₹ 5,961.96 Cr to ₹ 7,232.16 Cr registering a growth of 21.31% as on 31^st March 2023. Net Interest Margin stood at 3.31 % for FY23. Net total income registered a growth of 18.77% to reach Rs. 9,562.16 Cr.

Asset Quality

The Gross NPA of the Bank as on 31^st March 2023 stood at ₹ 4,183.77 Cr. Gross NPA as a percentage to Gross Advances is 2.36% as on 31^st March 2023. The Net NPA stood at ₹ 1,205.01 Cr and Net NPA percentage is at 0.69% as on 31^st March 2023. The Provision Coverage Ratio stood at 70.02% as on 31^st March 2023.

Capital Adequacy & Net worth

The Capital Adequacy Ratio (CRAR) of the Bank, computed as per Basel III guidelines, stood at 14.81% as on 31^st March 2023. The Net Worth of the Bank was at ₹ 21,419.49 Cr as on 31^st March 2023.

Dividend

The Board of directors at its meeting held today has recommended a dividend of 50% per equity share having face value of ₹ 2 for the year ended 31st March 2023. The dividend will be paid after the approval of shareholders at the Annual General Meeting.

Awards & Accolades

• Federal Bank is proud to be the only Commercial Bank in India to be recognized by Great Place to Work for Best Workplaces for building a culture of innovation for all
• Federal Bank & Infosys Finacle was recognized in the category ‘Excellence in Mobile Banking’ at The Retail Banker International Asia Trailblazer Awards 2023
• The Bank has been recognized for “Top 20 Most Innovative Practices – DivHERsity Hiring”
• Federal Bank & Rupeek partnership bagged the award for ‘Best FinTech Partnership/Start-up Alliance Initiative of the Year’ for ‘Gold Loan’
• The Bank won the Best Private Sector Bank at the SFKBC Banking Excellence Award 2022
• Federal Bank bagged Second Best (Silver Shield) in ICAI Awards for Excellence in Financial Reporting (FY22) under the category II(A)-Private Sector Banks
• Federal Bank was recognized as the Most Preferred Workplace 2022-23 in the BFSI sector
• Federal Bank won the prestigious IBA Award for ‘Digital Sales & Engagement’ 18th Annual Banking Technology Awards by IBA
• Federal Bank was awarded the Certificate of Achievement by the International Finance Corporation (IFC), a World Bank Group in recognition of Climate Financing Leadership in the South Asia Region (CSA) during FY 22 for having disbursed 332.9 million USD, making it the largest amount of climate loans disbursed.

Initiatives

• The Bank onboarded 350000 + MFI clients last year through multiple Business Correspondent engagements, with over 95% being women beneficiaries
• Bill discounting on TReDS platform grew by more than 237% YoY
• Partnered with Mashreq Bank to launch the first and only-of-its-kind online facility to open their NRI accounts

Footprint

The Bank has 1355 branches, 1914 ATMs/ Recyclers as on 31^st March 2023. 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).

Major Financial Indicators (Standalone Nos.)

(₹ in Cr)

Business Figures	Year Ended On
	31-03-2023	31-03-2022	Growth %)
Total Deposits	2,13,386.04	1,81,700.57	é17.44%
Gross Advances	1,77,376.53	1,47,639.45	é20.14%
Retail Advances	56,076.86	47,863.40	é17.16%
Agri Advances	23,355.00	19,227.93	é21.46%
Commercial Banking Advances	17,274.00	14,650.73	é17.91%
Gross NPA (%)	2.36	2.80%
Net NPA (%)	0.69	0.96%
Capital
Equity Capital	423.24	420.51
Net Worth	21419.49	18,660.98	é14.78%
Capital Adequacy (%)	14.81	15.77
Tier I (%)	13.02	14.43
Tier II (%)	1.79	1.34