Federal Bank gains 6 percent, net profit at 704 cr
Published On: Friday, October 14, 2022 | By: Team KnowMyStock
Shares of Federal Bank surged 6 percent to hit an all-time high of Rs 132.10 on the BSE in Friday’s intra-day trade on heavy volumes after the bank delivered its highest-ever quarterly net profit at Rs 704 crore (up 53 percent year-on-year) in the September quarter (Q2FY23). Net profit in the year-ago period stood at Rs 460 crore. Meanwhile, the lender's net income interest (NII), which is the difference between the interest earned and expended, rose about 19% to ₹1,762 crores from ₹1,479.4 crore year-on-year (YoY). On the other hand, its net interest margin (NIM) improved to 3.30%, higher by 10 bps YoY and 8 bps QoQ. Asset quality of the bank improved as gross non-performing assets (NPA) came at 2.46 percent as compared to 2.69 percent in the preceding quarter. The bank’s net NPA stood at 0.78 percent as against 1.12 percent in Q2FY22. Its provision and contingencies rose to ₹267.8 crores from ₹166 crores on a sequential basis, however, dipped as compared to ₹292 crores in September
The net worth of the bank increased from Rs 17,551.94 crore to Rs 19,617.82 crore, as on 30 September 2022.
“This has been our strongest quarter to date with very good growth across all key parameters. Strong business momentum has aided meaningful gains in market share. Credit costs are well controlled at 53 bps. We are encouraged by this and are working to ensure that the trend continues,” Shyam Srinivasan, managing director & CEO said.
The brokerage firm has a Buy rating on the stock with a target price of Rs 135.
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