Federal Bank gains on plan to hike stake in life insurance JV

Federal Bank rose 0.92% to Rs 43.80 after the bank said its board gave in-principle nod to acquire additional equity stake of up to 4% of IDBI Federal Life Insurance Co from IDBI Bank.

Federal Bank currently holds a 26% stake in IDBI Federal Life Insurance Co. Post purchase the total stake may increase up to 30%. The announcement was made after market hours on Tuesday, 21 April 2020.

Meanwhile, Federal Bank issued provisional business update for the January-March 2020 quarter after market hours on Tuesday, 21 April 2020. The Current Account-Savings Account (CASA) jumped 7% to Rs 46,451 crore (provisional) in Q4 March 2020 over Rs 43,388 crore in Q4 March 2019.

 

Total deposits rose 13% to Rs 1,52,290 crore (provisional) in Q4 March 2020 over Rs 1,34,954 crore in Q4 March 2019. Gross advances rose 11% to Rs 1,24,126 crore (provisional) in Q4 March 2020 from Rs 1,11,829 crore in Q4 March 2019.

Liquidity Coverage Ratio (LCR) stood at 195.01% (provisional) in Q4 March 2020 as against 164.20% in Q4 March 2019 and 181.30% in Q3 December 2019.

Federal Bank's net profit jumped 32.07% to Rs 440.64 crore on a 13.28% rise in total income to Rs 3,738.22 crore in Q3 December 2019 over Q3 December 2018.

Federal Bank operates through four segments: treasury, corporate or wholesale banking, retail banking and other banking operations.

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