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Federal Bank Ltd.

BSE: 500469 Sector: Financials
NSE: FEDERALBNK ISIN Code: INE171A01029
BSE 00:00 | 22 Oct 56.55 -0.40
(-0.70%)
OPEN

56.50

HIGH

56.85

LOW

55.80

NSE 00:00 | 22 Oct 56.50 -0.50
(-0.88%)
OPEN

56.50

HIGH

56.85

LOW

55.75

OPEN 56.50
PREVIOUS CLOSE 56.95
VOLUME 3084022
52-Week high 96.95
52-Week low 35.70
P/E 7.78
Mkt Cap.(Rs cr) 11,280
Buy Price 56.55
Buy Qty 1642.00
Sell Price 56.65
Sell Qty 81.00
OPEN 56.50
CLOSE 56.95
VOLUME 3084022
52-Week high 96.95
52-Week low 35.70
P/E 7.78
Mkt Cap.(Rs cr) 11,280
Buy Price 56.55
Buy Qty 1642.00
Sell Price 56.65
Sell Qty 81.00

Federal Bank Ltd. (FEDERALBNK) - Chairman Speech

Company chairman speech

Ms. Grace Elizabeth Koshie

We are emerging from unprecedented crisis. Across the globe and in India we arelearning to work through the challenges of the New Normal of the pandemic bringing outsome of the best and most enduring values of resilience cooperation and creativity evenas the shop floors repurpose to respond to the needs of survival .

Globally in FY 2020 apart from the havoc caused by the Covid

-19 outbreak in the last quarter of the financial year an array of geographical andpolitical factors led to a dismal economic growth of 2.9% the weakest since the 2008-09crisis. The threat of an imminent recession ongoing trade tensions between the US andChina and a delayed Brexit were among the factors that further spurred overall negativeglobal growth outlook. In India although the Covid crisis began to impact economicactivity only from the last fortnight of Financial Year the economy was already showingsigns of a slowdown.

As we all know the pandemic did not spare the financial services sector even as theregulators moved swiftly to secure the system. However each institution had to respondwith exceptional measures to continue to provide continuity of services to customers whileensuring the health and safety of the staff and the security of its systems. In the faceof unprecedented challenges your Bank acted with a clear focus to conserve preserve andinnovate to ride out the waves of the ongoing crisis believing that we would emergestronger at the other end.

We are already beginning to see the appearance of green shoots in the economy. The‘Atmanirbhar Bharat Abhiyan Rs stimulus package is expected to be the key driver ofrevival and structural reforms going forward. The package with its credit booster toMSMEs liquidity support to NBFCs HFCs and MFIs focus on social and rural segmentreforms in the power sector to strengthen the economy. These measures have certainlyimproved the outlook for the banking industry.

Despite the diverse challenges both in India and in global markets your Bank remainsresilient and has delivered a robust financial and operating performance with significantgrowth across parameters. I am delighted to share some of the highlights of ourperformance for FY 2020.

The operating rhythm of the Bank remained strong and the

Bank registered its highest ever Operating Profit and Net Profit registering a growthof 16% and 24% respectively.

The Bank crossed another milestone with total business crossing

Rs 2.5 Lakh Cr to reach Rs 274558 Cr with a growth of 12%. We continued to gain sharein the Market with the Market Share in credit improving by 5 bps to 1.18% and MarketShare in deposits better by 6 bps to reach 1.09% as on end of FY 2020. Total income grewby 18.58% from Rs 12770.05 Cr to Rs 15142.16 Cr. The Bank also registered impressiveresults on other key parameters such as Net Interest Income EPS including qualitativemetrics. The Bank continues to be well-capitalized with a comfortable CRAR position of14.35% as on 31 March 2020.

These encouraging numbers reflectingall-round balanced growth are the outcome ofdeliberate strategic efforts of a highly committed Federal Team who pursued the path ofexcellence notwithstanding challenges. Over the last decade the Bank under the seasonedand astute CEO Mr. Shyam Srinivasan leading a well-blended team of both experience andenergetic talent is being increasingly repositioned as a prominent national bankingplayer with innovation as key driver.

FIRST CHOICE

As your Bank climbs the value chain our benchmarks are reset under and a newleitmotif: FIRST CHOICE - the theme of the cover page of the Annual Report this year.FIRST CHOICE is our clarion call to ramp up performance and make Federal Bank the‘go-to Rs brand for everyone. It is an exhortation to up the game at all levels andbecome the most dependable ally for all our stakeholders with best-in-class productssuperior customer care unceasing innovation and creation of enduring value. I am surethat the mantra of FIRST CHOICE will resonate far and wide and will galvanize Federals togive their very best.

As the Bank takes strides to be the bank of FIRST CHOICE in the country the foundationto the quality of growth lies in the strong governance culture that we have carefullybuilt up over the years. The Board of Directors stands together in implementing thehighest standards of Corporate Governance supported by well-established accountabilityprocesses for self-assessment and ongoing improvements. The Corporate Governance practicesof the Bank with a track record of ethical conduct and transparent practices will I amsure offer the much needed reassurance to stakeholders in these turbulent times.

The members of the Board of your Bank represent some of best of expertise in theirrespective fields. In the last Financial Year the Board of the Bank was strengthened withthe addition of Mr. Siddhartha Sengupta (former Dy. MD of International Banking GroupSBI) CA Manoj Fadnis (past President of ICAI) Ms. Shalini Warrier (Chief OperatingOfficer of the Bank) and Mr. Sudarshan Sen (former Executive Director- RBI).

I take this opportunity to place on record the valuable contribution of Mr. DilipSadarangani the former Chairman and Independent Director for his immense contribution togovernance and the overall growth of the Bank as also for his foresight and wisdom. Helaid down the Chairmanship of the Bank on attaining the age of retirement. I also takethis opportunity to place on record the valuable contribution of Mr. Nilesh Vikamsey thepast Chairman and Independent Director for his astute interventions in the functioning ofthe Board and Committees and overall contribution to the growth of the Bank. We take thisopportunity to wish both many happy and fulfilling years ahead.

The collective experience and wisdom of my colleagues on the Board will I am surestand the Bank in good stead in our journey ahead through these unpredictable andunprecedented times. The structural soundness of the franchise along with its strongdigital orientation are key in making the Bank future ready. This edge will keep FederalBank a reliable FIRST CHOICE for its customers an exciting workplace for its employeesand a partner in progress for society at large while delivering significant returns tothe shareholders in spite of the pandemic led bleak outlook the Bank will not settle forless but rise to be the FIRST CHOICE of its stakeholders. This includes our hurtingcommunities across the country and the Bank continues to make tangible and lasting impactacross a number of areas through a variety of CSR initiatives reflectingits strong valuesas a Corporate Citizen.

In closing on behalf of my colleagues on the Board of Directors of the Bank I wouldlike to thank each member of the Federal Team for their hard work and commitment that hashelped us to be the Bank we are today. Thank you to our valued customers and shareholdersfor the continuing faith in your Bank. We look forward to continuing this journey with youto take the Bank to greater heights.

With best wishes

Grace Elizabeth Koshie

.