Private sector lender Federal Bank today reported a jump of 32.31% in net profit to Rs 776.79 crore for 2011-12 and said it will focus more on retail credit in the current fiscal.
The Kochi-based lender had posted a net profit of Rs 587.08 crore in the previous fiscal.
The bank said the overall asset quality has brought down its non-performing assets.
During 2011-12, the total income of the bank grew by 33.31% to Rs 6,091 crore from Rs 4,568.84 crore, while its net interest margin (NIM) stood at 3.79%.
Total deposits rose 13.77% from Rs 43,014.78 crore to Rs 48,937.12 crore, while advances increased 18.16% from Rs 31,953.23 crore to Rs 37,755.99 crore.
For the full year, its net NPA stood at Rs 199 crore. The bank closed the year with a capital adequacy ratio of 16.64%.
"An improvement in the overall asset quality brought down our stressed assets and helped us report healthy numbers. The overall growth was also aided by a 27% rise in our footprint," the bank's Managing Director and Chief Executive Shyam Srinivasan said in a conference call.
"We have restructured around Rs 920 crore assets during the quarter. The major chunk of around Rs 800 crore came from the aviation industry and state electricity boards. We do not have any major restructuring case in the pipeline. Asset quality will improve in FY13," he added.
For the fourth quarter ended March, 2012, it posted a healthy 38.4% rise in net profit at Rs 237.6 crore, up from Rs 171.72 crore in the year-ago period.
Net interest income rose during the quarter nearly rose by 10% to Rs 491 crore, while provisions, including taxes, came down by 24.46% to Rs 134.83 crore on the back of improved asset quality.
Accordingly, the gross non-performing asset ratio of the country's fourth largest private sector lender by branch network fell to 3.35% from 3.49%, while net bad loan, or NPA ratio, came down to 0.53% from 0.6%.
"In FY13, we are focusing more on retail credit. Both home and gold loans should grow 25-28% this fiscal. We are not violating any regulatory norms on gold loans, which currently stands at around Rs 3,600 crore," Srinivasan said, adding the bank's home loan book stood at Rs 5,000 crore by the end of the fiscal.