Federal Bank - Q2FY14 Result First-Cut - Microsec

Federal Bank Ltd. announced its Q2FY14 Result.

Bank's total income decreased by 4.64% QoQ while increased by 7.19% YoY to INR691.75 crores. The fall in total income on QoQ basis was mainly because of 33.55% QoQ de-growth in its other income to INR143.40 crores. Profit After Tax (PAT) increased by 113. 71% QoQ and 4.98% YoY to INR225.81 crores. During the quarter, the Bank has reduced its Provisioning by 95.52% QoQ and 63.94% YoY to INR10.98 crores which has supported its profitability.

Bank's loan book and total deposits expanded by 16.31% and 14.69% YoY to INR42220 and INR56794 crores respectively. On the asset quality front, Gross NPA improved by 12bps QoQ to 3.39% while, Net NPA increased by 7bps QoQ to 0.98%. However, Bank has improved its low cost deposit (CASA) by 176bps QoQ and 172bps YoY to 30.72% which has helped it to improve its Net Interest Margin (NIM) by 17bps QoQ to 3.30%. Moreover, Bank is well capitalized to support its growth trajectory, Capital Adequacy Ratio (CAR) stood at 15.35%. Provision Coverage Ratio (PCR) healthy stood at 81.23% which will support it to tame any time liabilities.

Source : Equity Bulls

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