Federal Bank’s June quarter profit grew 64 per cent year-on-year to Rs 600.66 crore. This is a record profit in any quarter.
Federal Bank Q1FY23: The June quarter of the financial year 2023 has been strong for South India based Federal Bank. The profit of the bank has increased by 64 per cent year-on-year to Rs 600.66 crore. The bank had a profit of Rs 367.29 crore in the same quarter a year ago. On a quarterly basis also, the profit of the bank has increased to close to 60 crores. Federal Bank had made a profit of Rs 540.54 crore in the March quarter. This is the top banking stock of veteran investor Rakesh Jhunjhunwala in terms of value. He holds 3.7 per cent stake in the bank and has 75,721,060 shares in his portfolio.
Revenue rises to Rs 4081.48 crore
Federal Bank’s revenue has increased year-on-year to Rs 4081.48 crore in the June quarter. The bank had a total income of Rs 4003.97 crore in the same quarter a year ago. The Net Interest Income (NII) of the bank has increased by 13.1 per cent year-on-year to Rs 1604.5 crore. However, the other income declined by 30.2 per cent year-on-year to Rs 453 crore. Net interest margin increased by 7 basis points to 3.22 per cent.
asset quality improvement
The Bank’s provisioning and contingencies have decreased by 74 percent on a yearly basis and stood at 166.68 crores. But it was double on a quarterly basis. In terms of asset quality, gross NPAs declined 11 points on a quarterly basis to 2.69 per cent. Net NPA declined by 2 points to 0.94 per cent. Loanbook grew 16 per cent year-on-year to Rs 1.54 lakh crore. Deposits grew 8 per cent to Rs 1.83 lakh crore, CASA deposits stood at Rs 67,540 crore and CASA ratio stood at 36.84 per cent.
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long term target
Brokerage house Motilal Oswal has set a target of Rs 130 for the long term in the stock of Federal Bank. In terms of the current price of Rs 97, it can give a return of about 34 percent. The brokerage house says that Federal Bank has presented better numbers in the June quarter. The advance of the bank has increased by 16.3 percent on a yearly basis to 1.5 lakh crore. There was also a growth of 4.6 percent on a quarterly basis. According to the internal classification, the retail credit growth of the bank has been 16.7 percent on a year-on-year basis. There was a growth of 15.8 percent in the wholesale book of the bank. Total deposits grew 8.2 per cent (+1% QoQ) year-on-year to Rs 1.83 lakh crore. The growth in term deposits was 6.1 per cent. The share of retail deposits has improved from 93 per cent to 94 per cent on a year-on-year basis.
(Disclaimer: Stock investment advice is given by the brokerage house. These are not the personal views of The Financial Express. Markets are risky, so take expert opinion before investing.)