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.
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