Federal Bank Q4FY24 net profit falls 10% QoQ to Rs 906 cr; dividend declared

Sequentially, the net profit fell 10 percent from Rs 1,007 crore in Q3FY24.

One of the significant highlights of the quarter was the bank achieving its highest-ever Net Interest Income (NII), which witnessed a notable increase of 14.97% to reach Rs 2195.11 crore.

Operating Profit also showed a healthy growth trajectory, reaching Rs. 1,110.35 crore during the quarter. The Return on Assets (ROA) for the quarter stood at 1.22%, reflecting the bank's efficient utilization of its assets, while the Return on Equity (ROE) stood at 12.75%, indicating sound returns for the bank's shareholders.

The bank reported that its total business reached an impressive figure of Rs 4,61,937.36 crore.

Furthermore, Federal Bank managed its asset quality well, with Gross Non-Performing Assets (GNPA) and Net Non-Performing Assets (NNPA) at 2.13% and 0.60% respectively, demonstrating prudent risk management practices.

The bank witnessed significant growth in its deposit base, with Total Deposits increasing by 18.35%. Similarly, Total Net Advances also saw a substantial uptick, registering a growth of 20.04% during the quarter.

Overall, Federal Bank's fourth-quarter financial results reflect a commendable performance, marked by robust growth in key financial indicators and a strong asset quality position, further solidifying its position in the banking sector.

Operating Review

Total Business

Total Business of the Bank reached Rs. 461937.36 crore registering a growth of 19.11% as on 31st March 2024.

Credit Growth

On the Asset side, Net advances increased from Rs. 174446.89 crore as on 31st March 2023 to Rs. 209403.34 crore on 31st March 2024. Retail Advances grew by 20.07 % to reach Rs.67435.34 crore. Business Banking advances grew by 21.13 % to reach Rs.17072.58 crore. Commercial Banking grew by 26.63% to Rs.21486.65 crore. Corporate Advances registered a growth of 11.97 % to reach Rs.73596.09 crore. The CV/ CE advances grew by 57.45 % to reach Rs 3441.80 crore.

Deposit Growth

Total Deposits increased from Rs.213386.04 crore as on 31st March 2023 to Rs.252534.02 crore as on 31st March 2024, registering a growth of 18.35%.

Operating Profit & Net Profit

The Bank registered Operating Profit of Rs.1110.35 crore and Net Profit of Rs.906.30 crore for the quarter ended 31st March 2024.

Income & Margins

Net Interest Income grew 14.97 % from Rs.1909.29 crore to Rs.2195.11 crore for the quarter ended on 31st March 2024. Total income of the Bank for the quarter grew by 23.42% to reach Rs.6732.23 crore. Earnings per share (EPS) annualized is Rs14.97.

Key Ratios

ROA & ROE of the Bank for the quarter stood at 1.22% and 12.75% respectively.

Robust Asset Quality

Gross NPA of the Bank as at the end of Q4 FY24 stood at Rs. 4528.87 crore, which as a percentage to Gross Advances stood at 2.13%. The Net NPA and Net NPA as a percentage to Net Advances as on 31st March 2024 stood at Rs. 1255.33 crore and 0.60% respectively. Provision Coverage Ratio excluding Technical Write Off was 71.08%.

Net Worth & Capital Adequacy

The net worth of the Bank increased by 35.81%, from Rs. 21419.49 crore to Rs. 29089.41 crore, as on 31st March 2024.

The Capital Adequacy Ratio (CRAR) of the Bank, computed as per Basel III guidelines stood at 16.13% as at the end of the quarter.

Dividend

The Board of directors at its meeting held today has recommended a dividend of 60% per equity share having face value of Rs.2 for the year ended 31st March 2024. The dividend will be paid after the approval of shareholders at the Annual General Meeting.