Monday, May 9, 2022

Federal Bank Delivers Highest Ever Quarterly Net Profit At Rs 541 Crore


* Federal Bank announced its audited financial results for the quarter and year ended 31st March 2022 today. 

Highlights

Net Profit @ Rs 541 Cr, grew by 13% YoY

ROA for Q4 at 1.03% and ROE at 11.93%

CASA grew by 15% YoY and CASA Ratio at all-time high level of 36.94%

The Capital Adequacy Ratio (CRAR) of the Bank stood at 15.77%, up by 115 bps YoY

Core Fee Income @ ?453 Cr, increase of 25% YoY & 10% QoQ

GNPA and NNPA brought down to 2.80% and 0.96% respectively

Agri Business grew by 20% YoY

Business Banking grew by 15% & Commercial Banking grew by 12% YoY

Market Share in Personal Inward remittance business at 20.16% (Q3 FY22)

OPERATING REVIEW

Total Business

The total business of the Bank reached Rs 3,29,340.02 Cr as on 31st March 2022 from Rs 3,07,521.19 Cr as on 31st March 2021, registering a growth of 7.10%.

Credit Growth

Gross Advances reached Rs 1,47,639.45 Cr as on 31st March 2022 from Rs 1,34,876.71 Cr as on 31st March 2021 registering a growth of 9.46%. Agri Advances registered a growth of 19.93% to reach ? 19,238.00 Cr from Rs 16,041.43 Cr. Business Banking Advances registered a growth of 15.00% to reach Rs 13,869.00 Cr. Commercial Banking Advances registered a growth of 12.00% to reach Rs 14,806.00 Cr. 

Deposit Growth

Deposits recorded a growth of 5.25% to reach Rs 1,81,700.57 Cr as on 31st March 2022 from Rs 1,72,644.48 Cr as on 31st March 2021. The CASA deposits reached Rs 67,121.21 Cr as on 31st March 2022. CASA Ratio stands at 36.94%. Resident Savings Bank deposit registered a growth of 16.04% to reach Rs 29,953.44 Cr as on 31st March 2022.

Operating Profit & Net Profit 

The Bank delivered an annual operating profit of Rs 3,757.85 Cr as on 31st March 2022. The annual net profit is at Rs 1,889.82 Cr as on 31st March 2022 up from Rs 1,590.30 Cr as on 31st March 2021.

Income & Margins

Annual Net Interest Income increased from Rs 5,533.71 Cr to Rs  5,961.96 Cr registering a growth of 7.74% as on 31st March 2022. Net Interest Margin stood at 3.20 % for FY22. Net total income registered a growth of 7.46% to reach Rs. 8,051.05 Cr.

Asset Quality

The Gross NPA of the Bank as on 31st March 2022 stood at Rs  4,136.74 Cr. Gross NPA as a percentage to Gross Advances is 2.80% as on 31st March 2022. The Net NPA stood at Rs 1,392.62 Cr and Net NPA percentage is at 0.96% as on 31st March 2022. The Provision Coverage Ratio stood at 65.54% as on 31st March 2022.

Capital Adequacy & Net worth

The Capital Adequacy Ratio (CRAR) of the Bank, computed as per Basel III guidelines, stood at 15.77% as on 31st March 2022, up by 115 bps YoY. The Net Worth of the Bank was at Rs 18660. 98Cr as on 31st March 2022. 

Dividend

The Board of directors at its meeting held today has recommended a dividend of 90% per equity share having face value of 2 for the year ended 31st March 2022. The dividend will be paid after the approval of shareholders at the Annual General Meeting.

Awards & Accolades

Won Finnoviti Award instituted by Banking Frontiers for ‘Fed-E-Studio’, the self-service banking kiosk for customers 

Won the award for Best use of Cloud in Banking at the 3rd Annual BFSI Technology Excellence Awards 2022

Winner of 'Best Fintech Adoption', runner up for 'Best Technology Bank of the Year', and special mention award for 'Best Cloud Adoption' at IBA’s 17th Banking Annual Technology Awards 

Winner of Finacle Client Innovation Awards in the mid-size bank segment in 5 categories namely Corporate Banking Digitization (Automatic Opening of Accounts through BPM), Customer Journey Reimagination (Fed-e-Point self-service customer portal), Modern Technologies-led Innovation (AI based Digital Lending Platform), Process Innovation (Be Your Own Master - Top Up Demand Loan) and Product Innovation (Cross Border Remittance Automation and Insta-Demat). The Bank also emerged as a runner up in the category Ecosystem-led Innovation (Neo-Banking)

Recognized as the 'Best mid-sized Bank' in the 26th 'Business Today - KPMG Annual Survey

Recognized as a Great Place to Work in a study conducted by the Great Place to Work® Institute for the second time in a row

Major Partnership

Partnered with Mashreq Bank to facilitate NR account opening for Indians in UAE, making it first of its kind

Partnered with BSE to promote listing of SMEs & Start-Ups

Partnered with Central Board of Indirect Taxes and Customs to help customers pay their taxes through various channels of the Bank

Footprint

The Bank has 1282 branches, 1885 ATMs/ Recyclers as on 31st March 2022. 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).

Q4FY22 Vs Q4FY21 

Resident Savings Bank deposit registered a growth of 16.04% to reach Rs 29,953.44 Cr

Total Deposits grew from Rs 1,72,644.48 Cr to Rs 1,81,700.57 Cr registering a growth of 5.25%

CASA recorded a growth of 14.99% to reach Rs 67,121.21 Cr

NRE deposits reached Rs 67,416.25 Cr from Rs 63,958.84 Cr registering a growth of 5.41%

CV/CE advances grew 40.11% to reach Rs. 1275.00 Cr

Gross Advances increased from Rs 1,34,876.71 Cr to Rs 1,47,639.45 Cr registering a growth of 9.46% 

Business Banking Advances and Commercial Banking Advances grew 15.00% and 12% to reach Rs 13,869.00 Cr and Rs 14,806.00 Cr respectively

Agri advances reached Rs 19,238.00 Cr from Q4FY22 Vs Q4FY21 

Resident Savings Bank deposit registered a growth of 16.04% to reach Rs 29,953.44 Cr

Total Deposits grew from Rs 1,72,644.48 Cr to Rs 1,81,700.57 Cr registering a growth of 5.25%

CASA recorded a growth of 14.99% to reach Rs 67,121.21 Cr

NRE deposits reached Rs 67,416.25 Cr from Rs 63,958.84 Cr registering a growth of 5.41%

CV/CE advances grew 40.11% to reach Rs. 1275.00 Cr

Gross Advances increased from Rs 1,34,876.71 Cr to Rs 1,47,639.45 Cr registering a growth of 9.46% 

Business Banking Advances and Commercial Banking Advances grew 15.00% and 12% to reach Rs 13,869.00 Cr and Rs 14,806.00 Cr respectively

Agri advances reached Rs 19,238.00 Cr from Q4FY22 Vs Q4FY21 

Resident Savings Bank deposit registered a growth of 16.04% to reach Rs 29,953.44 Cr

Total Deposits grew from Rs 1,72,644.48 Cr to Rs 1,81,700.57 Cr registering a growth of 5.25%

CASA recorded a growth of 14.99% to reach Rs 67,121.21 Cr

NRE deposits reached Rs 67,416.25 Cr from Rs  63,958.84 Cr registering a growth of 5.41%

CV/CE advances grew 40.11% to reach Rs. 1275.00 Cr

Gross Advances increased from Rs 1,34,876.71 Cr to Rs 1,47,639.45 Cr registering a growth of 9.46% 

Business Banking Advances and Commercial Banking Advances grew 15.00% and 12% to reach Rs  13,869.00 Cr and ? 14,806.00 Cr respectively

Agri advances reached ? 19,238.00 Cr from Rs 16,041.43 Cr registering a growth of 19.93 %

 16,041.43 Cr registering a growth of 19.93 %

 16,041.43 Cr registering a growth of 19.93 %

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