Federal Bank's stock price up by more than 4% today

14 Oct 2022 , 03:01 PM

In Friday’s intraday session on the BSE, shares of Federal Bank rose 6% to an all-time high of Rs 132.10 after the bank reported its highest-ever quarterly net profit of Rs 704 crore (up 53% year over year) in the September quarter (Q2FY23).

The private sector lender’s shares rose over the previous record high it had set on September 5, 2022, when it reached Rs 129.70. It was trading 5% higher at Rs 131.10 at 2:06 p.m., vs a 1.6% increase in the S&P BSE Sensex. With a combined 49.7 million shares moving hands on the NSE and BSE, the average trading volumes on the counter nearly quadrupled.

Federal Bank also reported its highest-ever net interest income in Q2FY23, at Rs1,762 crore, an increase of 19% year over year. During the quarter, net interest margin increased by 10 bps YoY to 3.3%.

The bank’s asset quality increased as gross non-performing assets (NPA) decreased to 2.46 % from 2.69 % in the previous quarter. In comparison to Q2FY22, the bank’s net NPA was 0.78 %, down from 1.12 %. According to the bank, its gross NPA and net NPA were at their lowest points in 24 and 34 quarters, respectively.

According to the management, significant market share increases were made possible by strong company momentum. The bank produced its highest-ever net profit, ROA and ROE are trending in the correct directions, and the bank’s asset quality is still very high at 2.46 % and 0.78 %. According to the management, credit expenses are kept under control at 53 bps.

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