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Federal Bank has posted its highest ever operating profit and net profit, the latter breaching the ₹1,000 crore landmark for the first time. The net profit grew by 20 per cent YoY from ₹838.89 crore in FY14 to ₹1,005.75 crore in FY15.
The bank also registered a 6 per cent growth in the net profit in Q4 at ₹280.53 crore against ₹264.69 crore achieved in Q3. The operating profit during the whole year registered 9.96 per cent growth at ₹1,627.79 crore against ₹1,480.39 crore.
The total deposits stood at ₹70,824.99 crore, an increase of 18.57 per cent against the industry growth rate of 12.78 per cent. The board of directors recommended 110 per cent dividend (₹2.20 per equity share of ₹2 face value).
Shyam Srinivasan, Managing Director and CEO said that the bank has crossed an important milestone in its journey to achieve this record figure thanks to the support extended by its employees and clients at a time when the environment is challenging. This gives us the inspiration to double the figure by next year. Besides the focus on asset quality for the last two years has paid off well by improving more than 50 per cent, he said.
The bank’s total business increased by 18.36 per cent to ₹1,22,109.98 crore. The NRE deposits recorded an impressive growth of 27.71 per cent to ₹24,230.90 crore from ₹18,973.56 crore. CASA grew 17.11 per cent to reach ₹21,549.57 crore as on March 31.
The other income grew 26.58 per cent from ₹693.85 crore as on March 31, 2014 to ₹878.31 crore as on March 31 this year.
The net interest income grew 6.81 per cent from ₹2,228.61 crore to ₹2,380.41 crore and the net interest margin improved sequentially by 11 basis points from 3.20 per cent to 3.31 per cent.
The bank continued to improve its asset quality in FY15 as the gross NPA de-grew by 2.73 per cent and stood at ₹1,057.73 crore against ₹1.087.41 crore. The net NPA stood at ₹373.27 crore as on March 31. The capital adequacy ratio (CRAR) computed as per Basel III guidelines, stands at comfortable level of 15.46 per cent.
The bank continued to expand its footprint and added 73 branches and 126 ATM’s during the year to take the tally to 1,247 branches and 1,485 ATM’s.
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