Federal Bank Q4 net profit up by 163% at INR 382 crore

www.newsbarons.com

The total business of the Bank grew by 20.28% Y-o-Y from INR 2,05,165.09 crore as on 31st March 2018 to INR 2,46,783.61 crore as on 31st March 2019.

Federal Bank full year net profit at INR 1244 Cr, Grows 41.54% ; Quarterly net profit at INR 382 Cr

Key Highlights

  • Highest ever annual net profit of INR 1,243.89 Cr (grew by 41.54%) and quarterly net profit of ₹ 381.51 Cr (grew by 163.13%)
  • Annual operating profit at INR 2,763.10 Cr (grew by 20.61%); Quarterly operating profit at INR 754.75 Cr (grew by 28.23%)
  • Total business of the Bank registered a growth of 20.28% to reach INR 2,46,783.61 Cr
  • Deposits recorded a growth of 20.50% to reach INR 1,34,954.34 Cr
  • Asset quality improved substantially with GNPA at 2.92% and NNPA at 1.48%
  • Retail advances recorded a growth of 24.79%
  • NRE deposits grew by 17.66 % to reach INR 50,109.16 Cr
  • Auto loans grew by 62.04%, Personal loans grew by 143.08% and housing loans grew by 32.16%

Commenting on the results and financial performance, Shyam Srinivasan, Managing Director & CEO, Federal Bank said, the Bank has once again delivered a robust operating performance, founded firmly on the strong growth momentum in both credit and liabilities. The tight performance of the Bank on the slippage front along with disciplined recovery has contributed significantly towards meeting the objectives of the quarter. Overall, it is an encouraging set of numbers.

OPERATING REVIEW

Total Business

The total business of the Bank grew by 20.28% Y-o-Y from INR 2,05,165.09 Cr as on 31st March 2018 to INR 2,46,783.61 Cr as on 31st March 2019.

Credit Growth

Gross Advances at INR 1, 11,829.27 Cr as on 31st March 2019 from INR 93,172.60 Cr as on 31st March 2018 registered a growth of 20.02%. Retail advances grew by 24.79% to reach INR 31,741.96 Cr as on 31st March 2019 from INR 25,437.00 Cr as on 31st March 2018. Agri advances registered a growth of 21.94% from INR 9,381.60 Cr as on 31st March 2018 to INR 11,440.00 Cr as on 31st March 2019. SME advances grew from INR 18,845.00 Cr as on 31st March 2018 to INR 21,099.31 Cr as on 31st March 2019 registering a growth rate of 11.96%. Corporate advances went up by 20.35% to reach INR 47,548.00 Cr as on 31st March 2019 from INR 39,509.00 Cr as on 31st March 2018.

Deposit Growth

Deposits recorded a growth of 20.50% to reach INR 1,34,954.34 Cr as on 31st March 2019 from INR 1,11,992.49 Cr as on 31st March 2018. The low cost CASA segment grew by 16.47% to reach INR 43,387.67 Cr as on 31st March 2019. The NRE deposits of the Bank posted a growth of 17.66% during the year to reach INR 50,109.16 Cr as on 31st March 2019 from INR 42,586.31 Cr as on 31st March 2018.

Operating Profit & Net Profit

The Bank delivered an annual operating profit of INR 2,763.10 Cr (grew by 20.61%) and Quarterly operating profit of INR 754.75 Cr (grew by 28.23%). Highest ever annual net profit of INR 1,243.89 Cr (grew by 41.54%) and quarterly net profit of INR 381.51 Cr (grew by 163.13%)

Margins

Annual Net Interest Income increased from INR 3,582.81 Cr to INR 4,176.35 Cr registering a growth of 16.57% as on 31st March 2019 while the quarterly Net Interest Income increased to INR 1,096.53 Cr from INR 933.22 Cr as on 31st March 2019. Net Interest Margin stood at 3.14% for FY19 while the quarterly Net Interest Margin stood at 3.17%.

Asset Quality

The Gross NPA of the Bank as on 31st March 2019 stood at INR 3,260.68 Cr. Gross NPA as a percentage to Gross Advances is 2.92%. The Net NPA stood at INR 1,626.20 Cr and this as a percentage to Net Advances is 1.48%. The Provision Coverage Ratio (including technical write-offs) stood at 67.16% as on 31st March 2019.

Capital Adequacy& Net worth

The Capital Adequacy Ratio (CRAR) of the Bank, computed as per Basel III guidelines, stood at 14.14% as on 31st March 2019. The Net Worth of the Bank is at INR 13273.04 Cr as on 31st March 2019.

Digital Banking – Digital @ the Fore, Human @ the Core

  • New partnership with Ripple Inc, a block chain supported global remittance company, for cross border remittance through its network. Powered by block chain-enabled solution, the Ripple platform ensures safe and secure cross-border transactions
  • FedAlert Mobile App to serve instant alerts via push notifications. It assures secured and reliable delivery of alerts. This facility will help the NR customers significantly.
  • 43% increase in digital transactions and a growth of 25.47% with regard to digital users
  • More than 1000 customers on-boarded to the new transaction banking platform – Fed E Biz and have transacted to the tune of ₹ 1400 Cr during the month of March 2019
  • More than 1 Lakh customers on-boarded to Bharat QR platform

Dividend

The Board of directors at its meeting held today has recommended a dividend of INR 1.40 per equity share having face value of INR 2 for the year ended 31st March 2019. The dividend will be paid after the approval of shareholders at the Annual General Meeting.

Footprint

The Bank has 1251 branches, 1669 ATMs and 269 Cash Machines as on 31st March 2019. The Bank also has its Representative Offices at Abu Dhabi and Dubai and an IFSC Banking Unit (IBU) in Gujarat International Finance Tec-City (GIFT City).