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Tag: Federal Bank

Federal Bank Wraps Up FY 24 With 24% Rise in Profit, highest NII, Maintains Robust Asset Quality

Federal Bank announced the Financial Results for the quarter and year ended 31st March 2024. The key highlights of the results on a Y-o-Y basis are as follows:
  • Total Business of the Bank reached Rs 4,61,937.36 Cr.
  • Highest Ever NIIup by 14.97% to ₹ 2195.11 Cr.
  • Net Profit at Rs.906.30 Cr.
  • Operating Profit at Rs.1,110.35 Cr
  • ROA for Q4 stood at 1.22 % and ROE stood at 12.75 %.
  • GNPA and NNPA at 2.13% and 0.60% respectively.
  • Total Deposits increased by 18.35 %.
  • Total Net Advances increased by 20.04 %. 
WORKING RESULTS AT A GLANCE                                             (Rs.in Cr)
Particulars
Results
 
31-03-2024
31-03-2023
Growth %
Total Income
6732.23
5454.60
é23.42%
Net Interest Income
2195.11
1909.29
é14.97%
Total Business
461937.36
387832.93
é19.11%
Net Advance
209403.34
174446.89
é20.04%
Operating Review
Total Business
Total Business of the Bank reached Rs. 461937.36 Cr registering a growth of 19.11% as on 31st March 2024.
Credit Growth
On the Asset side, Net advances increased from Rs. 174446.89 Cr as on 31st March 2023 to Rs. 209403.34 Cr on 31st March 2024. Retail Advances grew by 20.07 % to reach Rs.67435.34 Cr. Business Banking advances grew by 21.13 % to reach Rs.17072.58 Cr. Commercial Banking grew by 26.63% to Rs.21486.65 Cr. Corporate Advances registered a growth of 11.97 % to reach Rs.73596.09 Cr. The CV/ CE advances grew by 57.45 % to reach Rs 3441.80 Cr.
Deposit Growth
Total Deposits increased from Rs.213386.04 Cr as on 31st March 2023 to Rs.252534.02 Cr as on 31st March 2024, registering a growth of 18.35%. 
Operating Profit & Net Profit
The Bank registered Operating Profit of Rs.1110.35 Cr and Net Profit of Rs.906.30 Cr for the quarter ended 31st March 2024. 
Income & Margins
Net Interest Income grew 14.97 % from Rs.1909.29 Cr to Rs.2195.11 Cr for the quarter ended on 31st March 2024. Total income of the Bank for the quarter grew by 23.42% to reach Rs.6732.23 Cr. Earnings per share (EPS) annualized is Rs 14.97.
Key Ratios
ROA & ROE of the Bank for the quarter stood at 1.22% and 12.75% respectively.
Robust Asset Quality
Gross NPA of the Bank as at the end of Q4 FY24 stood at Rs. 4528.87 Cr, which as a percentage to Gross Advances stood at 2.13%. The Net NPA and Net NPA as a percentage to Net Advances as on 31st March 2024 stood at Rs. 1255.33 Cr and 0.60% respectively. Provision Coverage Ratio excluding Technical Write Off was 71.08%. 
Net Worth & Capital Adequacy
Net worth of the Bank increased by 35.81%, from Rs. 21419.49 Cr to Rs. 29089.41 Cr, as on 31st March 2024. Capital Adequacy Ratio (CRAR) of the Bank, computed as per Basel III guidelines stood at 16.13% as at the end of the quarter.
 Dividend
The Board of directors at its meeting held today has recommended a dividend of 60% per equity share having face value of Rs.2 for the year ended 31st March 2024. The dividend will be paid after the approval of shareholders at the Annual General Meeting.
Awards & Accolades
  • Recognized as the ‘Bank of the Year 2023’ in India instituted by ‘The Banker’.
  • ‘Finnoviti Award’ instituted by Banking Frontiers for ‘Fed-E-Studio’, the self-service Banking kiosk for customers.
  • Recognized as ‘ESG Champions of India 2024’ in the Commercial Banks sector at the Dun & Bradstreet ESG Leadership Summit 2024.
  • Ranked in the list of ‘Future-ready Workplaces’2024 by Fortune India and CIEL HR
  • Won the HR award for Future of Work, Workforce and Workplace (Large Segment) at the People Pioneers Awards 2024, instituted by TechCircle.
  • Honored with the Amity Banking Excellence for Sustainable Banking.
  • Recognized as the Best AI & ML Bank, Runner-up in Digital Engagement and received a special mention for driving Financial Inclusion.
  • Emerged winner in the ‘Best Bank in Fintech Initiative’ by BT Best Bank Awards
  • Won the KMA CSR Award in the Environment Sector at the KMA Sustainability Summit
  • 1st Runner-Up in the Diversity & Inclusion Excellence Award in the category “Best Employer for Women” (In Large Category) from The Associated Chambers of Commerce and Industry Of India (ASSOCHAM).
Initiatives
  • Executed first digital cross border trade transaction, i.e. Bill of Lading, through blockchain. India’s First-Ever Single Bank Digital Export Collection Bill Transaction in partnership with Wave BL. By transitioning to a digital solution, the Bank has reduced the lead time from up to a week to just 3 hours for its clients with the complete elimination of reams of paper.
  • Entered into Strategic partnership with Fintech Marketplace to provide leads for MSME clients.
  • Tied up with MAGNET (Maharashtra Agribusiness Network) project for funding VCOs/FPOs who are engaged in the selected horticulture crops for post-harvest management and value chain development.
  • Issuing electronic BG directly to beneficiary
  • WhatsApp Banking including end-to-end lending solution.
  • AI- based Virtual assistant for contact center that automates customer calls using AI for enquiries.
Footprint
  • 75 new outlets across the country during Q4 taking the total tally for the FY to 141, thereby crossing 1500 outlets for the Bank and 2013 ATMs/ Recyclers as on 31st March 2024.
MAJOR FINANCIAL INDICATORS (Standalone Nos)                                                         (Rs. in Cr)
Business Figures
As on 31.03.2024
As on 31.03.2023
Growth (%)
Total Deposits
252534.02
213386.04
é18.35%
Net Advances
209403.34
174446.89
é20.04%
CB Advances
21486.65
16968.04
é26.63%
Retail Advances
67435.34
56165.65
é20.07%
Corporate Advances
73596.09
65730.86
é11.97%
Business Banking Advances
17072.58
14094.84
é21.13%
Gold Loan including ADLG
25226.00
19841.00
é27.14%
Capital
 
 
 
Equity Capital
487.07
423.24
é15.08%
Net Worth
29089.41
21419.49
é35.81%
Capital Adequacy (%)
16.13
14.81
 
Tier I (%)
14.61
13.02
 
Tier II (%)
1.52
1.79
 
 

Federal Bank’s net profit grows 29% YoY, at Rs. 522 Cr | Q3 FY 2022 results

25th January 2022: Federal Bank announced Unaudited Financial Results for the quarter ended 31st December 2021. Major highlights of the results on a Y-o-Y basis are as follows:

  •   Total advances grew by 12% YoY
  •   Market share in Personal Inward remittance business at 19.23%
  •   CASA grew by 15% YoY, CASA ratio at an all-time high of 36.68%
  •   The total business grew by 10% YoY
  •   GNPA @ 3.06% & NNPA @ 1.05%
  •   NIM improved sequentially by 7 bps and stood at 3.27%
  •   Operating profit for Q3 at Rs. 914 Cr
  •   ROA for Q3 at 1.02% and ROE at 11.62%

Commenting on the results, Mr. Shyam Srinivasan, MD & CEO, said, “We are pleased to continue our strong performance with improvement across all parameters. Credit quality remains top quartile on the back of disciplined lending practices. The Bank has delivered a strong bottom line with key gains in Net Interest Income, Fee Income and Net Interest Margin. Net Profit improved substantially registering a growth of 29% and it helped deliver RoA of 1%+”

 Q3FY21 Vs Q3FY22

  • Agri Advances registered a growth of 17.95% to reach Rs. 18431.00 Cr
  • Housing Loans registered a growth of 13.87% to reach Rs. 21684.96 Cr
  • Retail Advances grew 7.91% to reach Rs. 45541.37 Cr
  • Gold Loans registered a growth of 11.48% to reach Rs. 16378.00 Cr
  • CASA registered a growth of 15.43% to reach Rs. 64343.28 Cr
  • Resident Savings Bank deposit registered a growth of 18.16% to reach Rs.28970.01 Cr
  • The net worth of the Bank reached Rs.18,087.98 Cr
  • Book Value per share increased to Rs. 86.05 from Rs. 78.32

 Balance Sheet

Total Business of the Bank grew 10.10% Y-o-Y from Rs. 2,87,174.69 Cr as of 31st December 2020 to Rs. 3,16,174.33 Cr as of 31st December 2021. Net advances recorded a growth of 12.14% to reach Rs. 1,40,742.63 Cr from Rs. 1,25,504.77 Cr as of 31st Dec 2021. Total Deposits reached Rs. 1,75,431.69 Cr from Rs. 1,61,669.92 Cr as of 31st Dec 2021.

Operating Profit & Net Profit

Net Profit for the quarter increased to Rs. 521.73 Cr compared to Rs. 404.10 Cr as of 31st Dec 2021. The Bank recorded an Operating Profit of Rs. 914.29 Cr as on 31st Dec 2021 down from Rs. 956.44 Cr a year earlier.

 Income & Margins

Net Interest Income of the Bank increased to Rs.1538.90 Cr as of 31st Dec 2021 from Rs. 1437.04 Cr as of 31st Dec 2020. Core fee income has registered a growth of 15.47% to reach Rs. 412.03 Cr. The Net Interest Margin of the Bank during the quarter ended 31st December 2021 stood at 3.27%.

 Asset Quality

Gross NPA and Net NPA of the Bank as at the end of the quarter stood at Rs. 4401.26 Cr and Rs. 1471.18 Cr respectively. Gross NPA as a percentage stands at 3.06% and Net NPA as a percentage stands at 1.05%, improving sequentially. Provision Coverage Ratio stands at 79.62% compared to 86.32% a year earlier.

 NET WORTH & CAPITAL ADEQUACY

The net worth of the Bank increased to Rs.18087.98 Cr as of 31st December 2021 from Rs.15631.15 Cr as of 31st December 2020. Capital Adequacy Ratio (CRAR) of the Bank, computed as per Basel III guidelines stood at 14.37% at the end of the quarter.

Footprint

The Bank has 1274 branches and 1882 ATMs/Recyclers as of 31st December 2021.

 

MAJOR FINANCIAL INDICATORS (Standalone nos.)

                                                                                                                                                      (Rs. in Crore)

Business Figures As on 31.12.2021 As on 31.12.2020 Growth (%)
Total Deposits 1,75,431.69 1,61,669.92 é8.51%
CASA 64,343.28 55,740.05 é15.43%
Net Advances 1,40,742.63 1,25,504.77 é12.14%
Retail Advances 45,541.37 42,202.56 é7.91%
Agri Advances 18,431.00 15,626.00 é17.95%
Capital      
Equity Capital 420.41 399.17  
Net Worth 18,087.98 15,631.15 é15.72%
Capital Adequacy (%) 14.37% 14.31%  
Tier I (%) 13.52% 13.00%  
Tier II (%) 0.85% 1.31%