Overview of Federal Bank Q4 Result
The Federal Bank, one of the leading private sector banks in India, has reported a net profit of Rs 903 crore in the fourth quarter of the fiscal year 2021-22. This is an impressive increase of 67% from the net profit of Rs 540 crore reported in the corresponding quarter of the previous year. The bank has attributed this remarkable growth to its focus on retail and MSME segments, improved asset quality, and cost optimization measures. Let’s take a closer look at the Q4 results of the Federal Bank.
Key Highlights of the Federal Bank Q4 Results
The Federal Bank has reported a net profit of Rs 903 crore for the Q4 of the FY 2021-22, up by 67% from Rs 540 crore reported in the same quarter of the previous year. The net interest income (NII) of the bank has increased by 7% year over year to Rs 1,549 crore, while the net interest margin (NIM) has improved to 3.29% from 3.04% in the previous year’s same quarter. The gross non-performing assets (NPAs) ratio has improved to 2.97% from 3.38%, while the net NPAs ratio has decreased to 1.09% from 1.22% in the same quarter of the previous year.
The bank’s total income has increased to Rs 4,344 crore from Rs 3,979 crore in the same quarter of the previous year, while the operating profit has increased to Rs 1,322 crore from Rs 1,064 crore in the same period of the previous year. The deposits of the bank have grown by 13% year over year to Rs 1,84,016 crore, while the advances have grown by 9% year over year to Rs 1,30,743 crore.
Federal Bank Q4 Fed growth factors
The Federal Bank has attributed its impressive Q4 growth to various factors, including:
Retail and MSME Focus
The bank has been focusing on retail and MSME segments, which have been growing rapidly in recent years. The bank’s retail loan portfolio has grown by 19% year over year, while the MSME loan portfolio has grown by 16% year over year. This focus has helped the bank to diversify its loan portfolio and reduce its dependence on corporate loans.
Improved Asset Quality
The bank’s asset quality has improved significantly in the Q4 of the FY 2021-22. The gross NPA ratio has improved to 2.97% from 3.38% in the previous year’s same quarter, while the net NPA ratio has decreased to 1.09% from 1.22% in the same quarter of the previous year. The bank’s proactive measures to identify and resolve NPA accounts have helped to improve its asset quality.
Federal Bank Reduced expenses methods
The bank has implemented various cost optimization measures, including branch rationalization, digitization of processes, and reduction of administrative expenses, which have helped to improve its operating efficiency. The bank’s operating expenses have decreased by 1% year over year, while the cost-to-income ratio has improved to 46.63% from 49.02% in the previous year’s same quarter.
download Federal Bank Q4 2023 RESULT pdf
What is the Federal Bank Q4 Results outcome?
Ans. Net Profit Increases 67% Year over Year to Rs 903 Crore
What was Federal Bank’s net NPA in Q4 2023?
Ans. In comparison to 0.96 percent in the fourth quarter of 2021–22, the Net NPA was at 0.69 percent. For the fiscal year that ended in March 2023, Federal Bank’s net profit was Rs 3,010.59 crore, up 59.31% annually.
When will Federal Bank release its results for the fourth quarter?
Ans. On May 5, 2023, Federal Bank, one of India’s top private sector banks, is expected to release its fiscal year 2022–23 fourth-quarter results. Investors and experts alike will be keenly watching the financial reports since the bank has been doing well lately despite the difficult economic climate.
Open Your Demat Account with Discount Brokers:
ZERODHA : https://zerodha.com/open-account?c=EJ4366
or with Angelone: https://tinyurl.com/2gloc3g6