You are here: Home » News-CM » Equities » Hot Pursuit
Business Standard

Federal Bank Q4 PAT slips 21% to Rs 301 cr

Topics
Business Finance

Capital Market 

Federal Bank's net profit dropped 21.04% to Rs 301.23 crore on 19.27% increase in total income to Rs 4,107.95 crore in Q4 March 2020 over Q4 March 2019.

Profit before tax (PBT) fell 32.09% to Rs 391.82 crore in Q4 March 2020 over Q4 March 2019. Tax expense fell 53.66% to Rs 90.59 crore during the period under review. The result was declared during market hours today, 28 May 2020.

Provisions and contingencies surged 219.25% to Rs 567.50 crore in Q4 March 2020 from Rs 177.76 crore in Q4 March 2019. Provision coverage ratio of the bank was at 72.48% as on 31 March 2020.

The bank's gross non-performing assets (NPAs) stood at Rs 3,530.83 crore as on 31 March 2020 as against Rs 3,618.69 crore as on 31 December 2019 and Rs 3,260.68 crore as on 31 March 2019.

The ratio of gross NPAs to gross advances stood at 2.84% as on 31 March 2020 as against 2.99% as on 31 December 2019 and 2.92% as on 31 March 2019. The ratio of net NPAs to net advances stood at 1.31% as on 31 March 2020 as against 1.63% as on 31 December 2019 and 1.48% as on 31 March 2019.

Net interest income rose 11% year-on-year (YoY) to Rs 1216 crore during the quarter. Net interest margin stood at 3.04% in Q4 March 2020 compared with 3.17% in Q4 March 2019.

Gross advances reached Rs 1,24,153.18 crore as on 31 March 2020 from Rs 1,11,829.27 crore as on 31 March 2019, registering a growth of 11.02%. Deposits grew 12.85% to reach Rs 1,52,290.09 crore as on 31 March 2020 from Rs 1,34,954.34 crore as on 31 March 2019. The Current Account-Savings Account (CASA) deposits reached Rs 45,450.24 crore as on 31 March 2020.

The Capital Adequacy Ratio (CRAR) of Federal Bank, computed as per Basel III guidelines, stood at 14.35% as on 31 March 2020 compared with 14.14% as on 31 March 2019.

Commenting on the results and financial performance, Shyam Srinivasan, the managing director (MD) & chief executive officer (CEO) of Federal Bank, has stated that: "The Bank has delivered a robust operating performance with the operating profit registering a growth of 27%. The asset quality of the Bank has improved substantially, which is a positive. To face any unfavorable situation that may arise due to the pandemic, we have increased the provisions substantially and strengthened the balance sheet. On the business front, the Bank has achieved robust growth in the retail segment with housing loans and gold loans growing handsomely."

Federal Bank operates through four segments: treasury, corporate or wholesale banking, retail banking and other banking operations. The bank has 1263 branches, 1937 ATMs/Recyclers as on 31 March 2020.

Shares of Federal Bank jumped 4.15% to Rs 42.70 on BSE. The stock hovered in the range of Rs 40.70 to Rs 43.25 in intraday.

Powered by Capital Market - Live News

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, May 28 2020. 15:54 IST
RECOMMENDED FOR YOU
RECOMMENDED FOR YOU