Profit before tax (PBT) fell 9% to Rs 537.76 crore in Q1 June 2020 over Q1 June 2019. Tax expense fell 33.6% to Rs 136.99 crore during the period under review. The result was declared during market hours today, 15 July 2020.
Provisions and contingencies soared 105.49% crore in Q1 June 2020 to Rs 394.62 crore from Rs 192.04 crore in Q1 June 2019. Federal Bank said that the aggregate provision against the likely impact of COVID-19, including the RBI mandated provision, as of 30 June 2020 stands at Rs 186.30 crore.
The Provision Coverage Ratio (including technical writeoffs) stood at 75.09% in Q1 June 2020.
On the asset quality front, bank's gross non-performing assets (NPAs) stood at Rs 3,655.59 crore as on 30 June 2020 as against Rs 3530.83 crore as on 31 March 2020 and Rs 3394.69 crore as on 30 June 2019.
The ratio of gross NPAs to gross advances stood at 2.96% as on 30 June 2020 as against 2.84% as on 31 March 2020 and 2.99% as on 30 June 2019. The ratio of net NPAs to net advances stood at 1.22% as on 30 June 2020 as against 1.31% as on 31 March 2020 and 1.49% as on 30 June 2019.
Net interest income rose 12.3% year-on-year (YoY) to Rs 1296 crore in Q1 June 2020. Net interest margin stood at 3.07% in Q1 June 2020 compared with 3.15% in Q1 June 2019.
The Capital Adequacy Ratio (CRAR) of Federal Bank, computed as per Basel III guidelines stood at 14.17% as on 30 June 2020 as against 14.35% as on 31 March 2020.
Federal Bank's total deposits reached Rs 1,54,937.74 crore in Q1 June 2020, registering a 16.9% growth from Q1 June 2019. Net advances grew by 8.27% Y-o-Y to reach Rs. 1,21,296.96 crore in Q1 June 2020.
Commenting on the results and financial performance, Shyam Srinivasan, Managing Director & CEO, Federal Bank said "We believe we have delivered a very healthy outcome in arguably the toughest operating conditions in well over 100 years. The Bank has been exemplar, braved all challenges and held fort all along and that is encouraging. The net NPA is down to 1.22% which is the lowest for the Bank in last 20 quarters. Cost to income has improved substantially and that augurs well for the Bank. Overall an encouraging quarter, given the challenging environment and truly motivates us to ensure sensible growth with abundant caution."
Federal Bank operates through four segments: treasury, corporate or wholesale banking, retail banking and other banking operations. The bank has 1263 branches, 1937 ATMs/Recyclers as on 31 March 2020.
Shares of Federal Bank fell 2.94% to Rs 49.6 on BSE. The stock hovered in the range of Rs 49.35 to Rs 53 in intraday.