Federal Bank Declares 67% Jump In Net Profit, Announces 50% Dividend

Federal Bank on Friday declared a surge of 67% year-on-year (YoY) in its net profit to Rs 903 crore for the quarter ended March 31, 2023. The private sector bank announced its highest-ever operating profit at Rs 1,335 crore, up 67% YoY. Board of directors recommended Re 1.00 per equity share final dividend. Meanwhile, shares of the bank tanked 8% in trade on May 5.

Federal Bank's Managing Director & Chief Executive Officer Shyam Srinivasan stated, "The consistent performance exhibited throughout the year has yielded in net annual profits of Rs 3010.59 crore, while maintaining benign asset quality across the segments. This very strong performance is a testimony to the dedicated efforts of the team and the trust of our customers. It's noteworthy that our market share gains across product categories is gathering momentum."

During the quarter, the lender declared higher provisions and contingencies at Rs 116.66 crore as against Rs 75.24 crore in the corresponding quarter in the year-ago period.

Dividend: According to the BSE filing of the company, "The Board of the Bank has also recommended the payment of final Dividend @ Rs 1.00 per equity share of the face value Rs. 2 each (50%) for the financial year 2022-23 subject to the approval of the Shareholders at the ensuing Annual General Meeting of the Bank."

Stock Performance & Return: The last trading price of Federal Bank is Rs 127.80 per share with intraday fall of 8.32%. The bank stock's 52-week high price is Rs 143.35 per share and 52-week low price is Rs 82.50 per share, respectively. The stock witnessed a rally of 35% in last 1-year, 59% rally in last 2-years, and 197 surge in last 3-years.