Federal Bank Ltd Q3FY13 result: Microsec Research

Federal Bank Ltd has announced its Q3FY13 result on 17^th January 2013.

The bank’s total income increased by 8.66% QoQ and 5.29% YoY to INR701.20 crores, Whereas, Profit After Tax (PAT) decreased by 2.01% QoQ and increased by 4.41% YoY to INR210.78 crores. Bank has increased its provision by 144.30% QoQ but decreased by 35.45% YoY to INR74.39 crores.

During the quarter, Bank's loans book and total deposits expanded by 18.94% and 10.41% YoY to INR39494.03 and INR51607.31 crores respectively. On the assets quality front, the bank’s assets quality is still the matter of concern, NNPA increased by 24bps QoQ and 18bps YoY to 0.92%. On the margin front,  Net Interest Margin (NIM) decreased by 9bps QoQ and 45bps YoY to 3.49%. However, bank is well capitalized to support its growth trajectory, Capital Adequacy Ratio (CAR) stood at 14.92% which is around 6% higher than the regulator’s stipulated norms. 

Q3’13 (INR Crores)	Consensus	Actual	Variance %
PAT	220	210.78	-4.19%

Federal Bank Quarterly-[INR-Crores]
DESCRIPTION	Q3'13	Q2'13	Q3'12	QoQ%	YoY%
Interest Earned	1521.77	1525.63	1466.83	-0.25	3.75
Interest Expended	1024.42	1019.72	938.80	0.46	9.12
NII	497.35	505.91	528.03	-1.69	-5.81
Other Income	203.85	139.41	137.93	46.22	47.79
Total Income	701.20	645.32	665.96	8.66	5.29
Operating Expenses	307.26	295.68	247.24	3.92	24.28
Operating Profit before Prov.& Cont.	393.94	349.64	418.72	12.67	-5.92
Provisions and Contingencies	74.39	30.45	115.25	144.30	-35.45
PBT	319.55	319.19	303.47	0.11	5.30
Tax	108.77	104.09	101.60	4.50	7.06
Profit After Tax	210.78	215.10	201.87	-2.01	4.41
Adj Calculated EPS	12.32	12.58	11.80	-2.07	4.41
Advances	39494.03	36299.18	33206.07	8.80	18.94
Deposits	51607.31	49518.07	46742.46	4.22	10.41
	Q3'13	Q2'13	Q3'12	QoQ (bps)	YoY(bps)
Capital Adequacy Ratio Basel II	14.92%	15.79%	15.91%	-87	-99
% of Net NPAs	0.92%	0.68%	0.74%	24	18
% of Gross NPAs	3.85%	3.83%	3.97%	2	-12
Provisions Coverage%	74.53%	80.00%	80.54%	-547	-601
Net Interest Margin %	3.49%	3.58%	3.94%	-9	-45
C/D ratio	76.53%	73.30%	71.04%	322	549
C/I Ratio	43.82%	45.82%	37.13%	-200	669
OI/TI	56.18%	54.18%	62.87%	200	-669

Regards,

Team Microsec Research

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