Federal Bank's loans grow by 9% growth in FY21, deposits rise by 13 %

Private sector lender Federal Bank posted a nine per cent growth in advances at Rs 1,34,876 crore for the financial year ended March 2021 (Fy21). It had posted 11.02 per cent growth in loans in the last year ended March 2020 (Fy20).

Provisional data showed that between early January and March 2021, advances rose Rs 6,696 crore, according to the lender’s filing with BSE.

Bank credit of commercial banks in India have expanded by 6.5 per cent (Year-on-Year basis) till March 12, 2021, up from 6.1 per cent a year ago period, according to Reserve Bank of India data.

Bankers said the pace of credit offtake begun to rise in the second half of Fy21 in tandem with economic recovery.

Meanwhile, bank’s deposits rose by 13 per cent (Y-o-Y basis) to Rs 1,72,655 crore in year ended March 2021, almost on par with 12.95 per cent clocked in Fy20.

RBI data showed that commercial banks grew their deposits by 12.1 per cent in Y-o-Y basis till March 12, 2021, up from 9.1 per cent a year ago.

Federal Bank’s low-cost deposits--current account and saving deposits(CASA)—were up by 26 per cent to Rs 58,381 crore. The share of CASA deposits improved to 33.81 per cent in March 2021 from 30.50 per cent in March 2020.

The private lender stepped up resource (deposits) raising through Certificate of Deposits (CDs) in the fourth quarter ended March 2021 (Q4Fy21).  Its funds raised via CDs from Rs 1,848 crore in December 2020 to Rs 5,985 crore in March 2021. For Fy21, CDS rose by 35 per cent from Rs 4,449 crore in March 2020 to Rs 5,985 crore.

It was active in the inter-bank deposits segment also, with 39 per cent to Rs 3,050 crore in March 2021 from Rs 2,190 crore in March 2020.