Companies

Federal Bank clocks 47% growth in Q4 net

Our Bureau Kochi | Updated on May 07, 2011

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Aluva-based Federal Bank has registered a 47 per cent growth in its net profit touching Rs 171.72 crore in the fourth quarter against Rs 116.85 crore in corresponding previous period.

The net profit for the 12 months ended March 2011 was at Rs 587.08 crore, which is 26.38 per cent higher than Rs 464.55 crore clocked as on March 31, 2010.

The operating profit for the fourth quarter at Rs 350.22 crore is a shade lower by 0.45 per cent over the corresponding previous figure, mainly on account of increase in costs due to wage revision and absorption of pension costs. However, the operating profit for the fiscal ended March 31 at Rs 1,427.25 crore was higher by 12.84 per cent over the previous fiscal.

Total income rises

The bank in a statement said the total income for the quarter increased by 14.53 per cent to Rs 1,241.21 crore, while for the entire fiscal, it increased by 8.67 per cent to Rs 4,568.84 crore. The net interest income for the quarter grew by 9.26 per cent to Rs 447.64 crore, while for the full year, the NII rose 23.80 per cent to Rs 1,746.68 crore.

The interest income for the fourth quarter increased by 15.41 per cent on a year-on-year basis to Rs 1,100.02 crore, while that for the entire fiscal increased by 10.31 per cent to Rs 4,052.03 crore. The other income for the fourth quarter rose 8.12 per cent to Rs 141.19 crore compared to the corresponding previous period, while the other income for the 12-month period decreased marginally from Rs 530.91 crore to Rs 516.81 crore. However, other income, excluding trading gain on securities, increased by Rs 47.73 crore (11.3 per cent) over the previous fiscal.

The net interest margin (NIM) for the fiscal ended March 2011 is at 4.22 per cent. The NIM witnessed a marginal decline in comparison with Q3 of this fiscal as well as Q4 of previous fiscal. The general increase in interest rates, the bank's conscious movement towards higher rated borrowers and risk adjusted pricing of loans lead to this marginal decline in NIM.

Net NPA down

The bank revamped its credit delivery, loan monitoring mechanism and NPA (non-performing assets management). As a result, the gross NPAs were than in the previous quarter. The ratio of gross NPA as on March 31 is 3.49 per cent as against 3.95 per cent of the previous quarter. The net NPA decreased from 0.81 per cent to 0.60 per cent of the previous quarter.

The earning per share (annualised), book value per share and return on average equity (RoE) for the fiscal ended March 31 stood at Rs 34.32, Rs 298.67 and 11.98 per cent, respectively against Rs 27.16, Rs 274.24 and 10.3 per cent, respectively as at March 31, 2010.

Published on May 07, 2011

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