The Hindu Business Line : Federal Bank net dips by 17 pc

Federal Bank has recorded a net profit of Rs 40.18 crore (Rs 48.68 crore) for the first quarter of the current year. The net profit is down 17.46 per cent due to higher provisions on investment as a result of an upward movement in interest rates and depreciation in the equity portfolio, the bank said.

The bank has also obtained the permission from RBI to open its representative office in UAE to help in establishing a strong presence in West Asia for an aggressive penetration into the NRI segment.

Total income up 18.75%

The total income of the bank grew by 18.75 per cent to Rs 462.52 crore (Rs 389.50 crore). Supported by strong asset growth and prudent management of the balance sheet, total interest income grew to Rs 408.27 crore (Rs 347.29 crore).

Net interest income grew by 10.02 per cent to Rs 158.61 crore. With a surge in remittance business, distribution, cash management, depository and recovery from written off accounts, the non-interest income of the bank grew by 54.6 per cent to Rs 50.54 crore.

Total business of the bank grew by Rs 7,300 crore to touch Rs 30,389 crore. With savings bank and current account deposits growing by 27.22 and 36.80 per cent respectively, the total deposit base grew to Rs 18,455 crore. Marking strident growth in retail and SME segments, the total advances went up by 36.8 per cent to Rs 11,933 crore.

Retail loans extended to individuals by the bank grew by 56 per cent and touched Rs 3,428 crore, accounting for 27 per cent of the total advances. Housing loans grew by 53 per cent to touch Rs 1,815 crore.

Net worth at Rs 1,290 cr

The net worth of the bank grew to Rs 1,290 crore. The bank could clock a capital adequacy of 13.04 per cent, against the standard norm of 9 per cent. The bank also held an investment fluctuation reserve of Rs 156.67 crore, which worked out to 5.93 per cent of the total trading book.

The net NPA declined from 1.96 to 0.76 per cent, even as the gross NPA fell from 7.10 per cent to 4.44 per cent.

The provisions coverage of gross NPAs amounted to 81.59 per cent. The earnings per share stood at Rs 18.77, while the book value stood at Rs 150.71.

The bank plans to reach a business volume of Rs 38,000 crore by the end of the current year and the focus would continue to be on SME and retail segment in the credit segment.

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