Federal Bank Q2FY23 PAT up 50.98% at Rs733cr as higher revenues is backed by lower provisioning

15 Oct 2022 , 04:44 PM

Federal Bank Ltd reported 20.34% growth in total revenues for the September 2022 quarter on consolidated basis at Rs4,887cr. Sequential revenues were up 13.16%.

For the September quarter, the bank witnessed growth across all the three major heads of revenues viz. retail banking, wholesale banking and treasury operations.

There was also a sharp increase in other income which basically represents the fees earned from providing services to customers, commission from non-fund based banking activities, earnings from foreign exchange and derivative transactions and selling of third party products.

Overall, the bank saw positive traction in top line growth in deposits and also in total advances.

Consolidated Profit after tax (PAT) for September 2022 quarter was up 50.98% at Rs733cr as the company’s higher levels of income from operations were backed by lower provisioning.

In fact, the sharp fall in provisions on a yoy basis from Rs312 crore to Rs284 crore helped the boost in profits. In addition, while the profits from corporate banking were lower on a yoy basis, the operating profits from treasury and other banking operations were more than double of last year, which boost profits in the current quarter.

Net margins for Q2FY23 stood at 15.01% compared to 14.69% in sequential quarter and 11.96% in year ago quarter.

Financial highlights for Sep-22 compared yoy and sequentially

	Federal Bank
Rs in Crore	Sep-22	Sep-21	YOY	Jun-22	QOQ
Total Income (Rs cr)	₹ 4,887	₹ 4,061	20.34%	₹ 4,318	13.16%
Operating Profit (Rs cr)	₹ 1,281	₹ 968	32.29%	₹ 1,039	23.35%
Net Profit (Rs cr)	₹ 733	₹ 486	50.98%	₹ 634	15.63%
Diluted EPS (Rs)	₹ 3.45	₹ 2.32		₹ 2.99
OPM	26.22%	23.85%		24.05%
Net Margins	15.01%	11.96%		14.69%