Federal Bank Q3 PAT up 29.09% at Rs539.77cr on 44.6% lower provisions for loan losses

26 Jan 2022 , 07:44 PM

Federal Bank Ltd reported flat 1.05% growth yoy in total revenues for the Dec-21 quarter on consolidated basis at Rs4,125.30cr. On a sequential basis, the revenues were higher for the quarter by 1.59%.

During the quarter, Federal Bank reported higher retail banking income while the income from corporate banking was lower and the treasury income was actually lower on yoy basis.

Capital adequacy ratio stood at 14.97%, higher on a yoy basis but lower on a sequential basis. Gross NPAs have moved higher yoy at 3.10% from 2.67%.

The consolidated Profit after tax (PAT) for the Dec-21 quarter was up 29.09% at Rs539.77cr on higher revenues supported by lower provisioning.

The provisions for loan losses fell sharply from Rs.433cr in Dec-20 quarter to Rs240cr in the Dec-21 quarter. EBIT from treasury and retail banking were lower but corporate banking turned around to profit from loss last year.

Net margins improved from 10.24% in the Dec-20 quarter to 13.08% in the Dec-21 quarter. Net margins were also sharply better sequentially due to lower provisions.

Financial highlights for Dec-21 compared yoy and sequentially

	Federal Bank
Rs in Crore	Dec-21	Dec-20	YOY	Sep-21	QOQ
Total Income (Rs cr)	₹ 4,125.30	₹ 4,082.31	1.05%	₹ 4,060.75	1.59%
Net Profit (Rs cr)	₹ 539.77	₹ 418.14	29.09%	₹ 485.72	11.13%
Diluted EPS (Rs)	₹ 2.55	₹ 2.09		₹ 2.32
Net Margins	13.08%	10.24%		11.96%