Federal Bank Q1 advances up 21%; deposits grow 21.4% to reach Rs 2.22 trn

Retail credit book grows by 20.2% YoY, says private bank in stock exchange statement

Federal Bank has posted a 20.9 per cent year-on-year (YoY) growth in advances at Rs 1.86 trillion in the quarter ended June 30, 2023 (Q1 FY24).

The bank’s pace of advances, 15.4 per cent YoY, was ahead of the banking system till June 16, according to Reserve Bank of India’s data.

Sequentially, Federal Bank’s growth in loans was 5.2 per cent in Q1 FY24 compared to the quarter ended March 2023.  

Federal Bank, in a filing with the exchange, said its deposits grew 21.4 per cent YoY to reach Rs 2.22 trillion level at end of June 2022, matching pace of its loan growth on YoY basis. Deposit mobilisation growth at 12.1 per cent was also higher than the banking system’s pace.

Sequentially, the private bank’s deposits grew by 4.3 per cent over outstanding deposits at the end of March 2023.

Referring to segmental performance, Federal Bank said as per internal classification its retail credit book grew by 20.2 per cent YoY and wholesale credit book grew by 21.6 per cent. Retail to wholesale ratio was at 54:46 respectively in the total loan book.

On the liabilities side, the share of low-cost money–Current Account and Savings Account (CASA)–declined to 31.85 per cent at the end of June 2023 from 32.68 per cent in March 2023 and 36.84 per cent a year ago.