Shares of Federal Bank Ltd hit an all-time high today after the lender reported better-than-expected earnings for the quarter ended September 2023. Net profit climbed 35.56% to Rs 954 crore in Q2 against the profit of Rs 703.7 crore in the September quarter of 2022. The bank logged highest ever quarterly profit in Q2.
Net interest income came 16.7% higher at Rs 2056.4 in Q2 against Rs 1761.18 crore in September quarter of the previous fiscal. NII too was the highest in the last quarter.
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Federal Bank shares touched a record high of Rs 152.55 against the previous close of Rs 149.50 on BSE. Market cap of the bank rose to Rs 35,126 crore on BSE. Federal Bank stock has risen 14.63% in one year and gained 8.46% since the beginning of this year.
Total 9.30 lakh shares changed hands amounting to turnover of Rs 13.96 crore on BSE.
In terms of technicals, the relative strength index (RSI) of the stock stands at 57.4, signaling the stock is neither oversold nor overbought. The banking stock has a one-year beta of 1, indicating high volatility during the period. Federal Bank shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
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Deposits grew 23% to Rs 2.32 lakh crore in the last quarter against Rs 1.89 lakh crore in the September 2022 quarter. On a quarter on quarter basis, deposits rose 5% from Rs 1.89 lakh crore in Q1 of the fiscal.
The bank logged the lowest gross non-performing assets of Rs 2.26% in Q2 of the current fiscal against Rs 2.46% in the Q2 of the previous fiscal. Net non-performing assets fell to 0.64% in Q2 compared to 0.78% in the Q2 of previous fiscal. The lender also logged the highest ever operating profit of Rs 1324.45 crore in Q2 of the current fiscal against Rs 1212.24 crore in the corresponding quarter of the previous fiscal.
Total business of the bank rose 21.49% to Rs 4.25 lakh cr clocking a growth of 21.49% in Q2.
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ROA (Return on assets) & ROE (Return on equity) of the Bank for the quarter stood at 1.36% and 15.72% respectively.
Shyam Srinivasan, Managing Director & CEO, Federal Bank said, “The Q2 Results are a sigma of many of our initiatives coming together well and has helped us deliver our highest ever profits. Some of the marquee investments we raised in Q2 are a true testimony to our governance, social and environmental commitment standards. We are pleased to deliver on our commitments made to them and do stay determined to make continued progress on all our chosen areasin pursuit of our vision of being the most admired bank.”
