Amid concerns triggered by the YES Bank crisis, Federal Bank said on Friday that its asset quality is healthy and that capital adequacy is much above the regulatory requirement.

“To reiterate the bank’s strengths, Federal Bank now has a CRAR (capital adequacy ratio) of 14.14 per cent (FY19), which is higher than the regulatory minimum of 9 per cent.

“As on December 31, 2019, the total CRAR of the bank was 13.64 per cent, with Tier 1 capital being at 12.62 per cent, and this indicates a strong position on capital,” the bank said in a statement.

Also, the gross NPA (non-performing asset) ratio is 2.92 per cent against the industrial average of 9.1 per cent.

Stress book to average assets of Federal Bank has come down from 1.96 per cent in third quarter of FY19 to 1.59 per cent in the same quarter this fiscal. “These figures show that the asset quality of the bank is safe and healthy. Federal Bank’s deposits have been growing at a healthy rate of 14 per cent year-on-year (December 2019 versus December 2018),” it added.

The lender also said that nearly 90 per cent of the bank’s deposits are granular. “This means, the percentage of deposits, which are of value ₹2 crore or below in our base, is close to 90 per cent. This reduces the risk of dependency on high-value deposits for the bank,” it said.

Shareholder base

The lender also said that its shareholder base is very widely held with no promoter groups holding shares.

“The history of Federal Bank dates back to the pre-independence era. Federal Bank is an extremely well-capitalised private bank with a strong financial base and a legacy close to nine decades with a customer base of 10 million,” it said.

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