Federal Bank Q3 advances up 12% YoY, top those of most other lenders

Its pace of loan book expansion was higher than the 7.3 per cent YoY growth shown by commercial banks in India as a group till middle of December 2021

Private lender Federal Bank’s loan book grew by 12 per cent on a year-on-year (YoY ) basis to Rs 143,633 crore at end of December 2021 from Rs 1,28,180 crore a year ago. Its pace of loan book expansion was higher than the 7.3 per cent YoY growth shown by commercial banks in India as a group till mid December 2021.

Kochi-based bank’s advances were up by 4.6 sequentially from Rs 1,37,313 crore at end of September 2021 (Q2Fy22).

Its share was trading 4.82 per cent higher at Rs 87 per share on BSE.

Federal bank’s deposits grew by nine per cent YoY to Rs 1,75,432 crore in December 2021. Sequentially, its deposits rose by two per cent from Rs 1,71,997 crore at end of September 2021.

Its share of low-cost deposits – current account and savings account or CASA – rose to 36.68 per cent in December 2021 from 34.48 per cent a year ago and 36.16 per cent in September 2021.

Its use of certificate of deposits (CDs) to raise funds for business operations rose sharply in the third quarter. The outstanding CDs stood Rs 3,180 crore in December 2021 up from Rs 1,930 crore in September 2021 and Rs 1,848 crore in December 2020.        

Meanwhile, another private sector lender RBL Bank’s deposits shrunk by 2.58 percent sequentially from Rs 75,588 crore at end of September 2021 (Q2FY22) to Rs 73,637 crore at end of December (Q3FY22). However, deposits rose 9.6 per cent Y-o-Y from Rs 67,184 crore in December 2020. Bank did not provide information on loan business in Q3FY22.

Bank is facing rough weather since Christmas (December 25, 2021), after its managing director and chief executive Vishavir Ahuja suddenly went on medical leave and the Reserve Bank of India (RBI) appointed its official as nominee on board of directors of the bank.  

Retail deposits and those from small business customers fell by 11.3 per cent from Rs 31,421 crore in September 2021 to Rs 27,871 crore in December 2021. The deposits stood at Rs 24,413 crore at the end of December 2020.

Within the deposit pool, contraction in the low-cost money – CASA deposits - was 5.30 per cent from Rs 26,734 crore at the end of Q2FY22 to Rs 25,316 crore at the end of Q3FY22, according to a bank filing with BSE. The share of CASA fell one per cent to 34.4 per cent in December 2021 from 35.4 per cent in September 2021. However, the share of CASA deposits was higher compared to 31.1 per cent at the end of December 2020.