Federal Bank net profit jumps 67 pc in fourth quarter

Kochi (Kerala) [India], May 5 : Federal Bank on Friday posted a 66.98 per cent jump in its net profit to Rs 902.61 crore for the quarter ended March 31, 2023, against Rs 540.54 crore in the year-ago period.

According to a statement shared with stock exchanges, the lender's operating profit grew 67.20 per cent to Rs 1,334.58 crore in the reviewed quarter, against Rs 798.20 crore in the corresponding period the previous year. Net interest income jumped 25.18 per cent to Rs 1,909.29 crore, against Rs 1,525.21 crore in the year-ago period.

The lender said its total business reached Rs 3,87,832.93 crore as on March 31, 2023, from Rs 3,26,628.92 crore as on March 31, 2022, registering an 18.74 per cent growth.

Shyam Srinivasan, managing director and CEO, Federal Bank, said, "We have delivered industry-leading outcomes with net profit at Rs 903 crore QoQ (quarter-on-quarter) and RoE (return on earnings) at an all-time high at 17.48 per cent. The consistent performance exhibited throughout the year has yielded in net annual profits of Rs 3,010.59 crore, while maintaining benign asset quality across the segments."

The gross non-performing asset as on March 31, 2023, stood at Rs 4,183.77 crore. Gross NPA as a percentage to gross advances is 2.36 per cent as on March 31, 2023. The Net NPA stood at Rs 1,205.01 crore and Net NPA percentage is at 0.69 per cent as on March 31, 2023.

Srinivasan also said, "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."

The board of directors at its meeting held on Friday has recommended a dividend of 50 per cent per equity share having a face value of Rs 2 for the year ended March 31, 2023. The dividend will be paid after the approval of shareholders at the annual general meeting.