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Private sector lender Federal Bank reported its highest ever quarterly net profit at ₹540.54 crore for the fourth quarter of the last fiscal, registering year-on-year growth of 13.13 per cent. The bank’s net profit was ₹477.81 crore in the fourth quarter of 2020-21.
The lender’s net profit for 2021-22 grew by a robust 18.83 per cent to ₹1,889.82 crore, from ₹1,590.30 crore in 2020-21.
For the quarter ended March 31, 2020, net interest income grew 7.38 per cent to ₹1,525.21 crore, as against ₹1,420.37 crore in the same period a year ago.
Net Interest Margin fell to 3.16 per cent for the fourth quarter of 2021-22 from 3.23 per cent a year ago.
Other income fell 2.6 per cent to ₹465 crore in the fourth quarter of the last fiscal, from ₹477.53 crore in the same period in the preceding fiscal. The core fee income grew 25 per cent year-on-year to ₹453 crore in the fourth quarter last fiscal.
The bank said, other income was impacted by lower treasury gains and loss on revaluation of security receipts.
Provisions declined by 70.4 per cent to ₹75.24 crore in the January to March 2022 quarter versus ₹254.49 crore a year ago.
Asset quality also improved.
The gross non-performing assets as on March 31, 2022 stood at ₹4,136.74 crore or 2.8 per cent of gross advances as against 3.41 per cent as on March 31, 2021.
The net NPAs stood at ₹1,392.62 crore and the net NPA percentage was at 0.96 per cent of net advances as on March 31, 2022 from 1.19 per cent a year ago.
The Provision Coverage Ratio stood at 65.54 per cent as on March 31, 2022.
“Asset quality of the bank has been resilient and demonstrates its underwriting, monitoring and collection capabilities. Credit cost for 2021-22 was at a new low at 45 basis points. We have played the turbulent times reasonably well and are now on the path to sustained growth momentum with various enablers in place,” said Shyam Srinivasan, Managing Director and CEO, Federal Bank.
Dividend announcement
The board had recommended a dividend of 90 per cent per equity share having face value of ₹2 for the year ended March 31, 2022. The dividend will be paid after the approval of shareholders at the annual general meeting.
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