Federal Bank FY21 net profit rises 3% to Rs 1,590 crore

Federal Bank on Monday reported a 3.08 per cent year-on-year increase in net profit at Rs 1,590 crore for fiscal year ended March 2021.

The bank's net interest income (NII) grew 19.03 per cent to Rs 5,534 crore, while net interest margin (NIM) stood at 3.16 per cent.

While total deposits grew 13.37 per cent to Rs 1.72 lakh crore in FY21, current account and saving account (CASA) deposits rose 25.66 per cent to Rs 58,370 crore.

For January-March quarter, the bank reported its highest ever quarterly net profit of Rs 448 crore, 58.60 per cent higher than that in the corresponding period of previous year. NII rose 16.80 per cent to Rs 1,420 crore, while NIM rose 19 basis points to 3.23 per cent.

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In terms of asset quality, Federal Bank's gross non-performing assets (NPA) stood at Rs 4,602 crore as of March 31, while net NPA stood at Rs 1,569 crore. In percentage terms, gross NPA stood at 3.41 per cent of total advances, while net NPA was at 1.19 per cent.

The bank's provision coverage ratio stood at 65.14 per cent as of March 31, 2021.

"Some of the segments such as gold loans and CASA continue to shine for us with gold loans registering a staggering growth of 70.05 per cent. The asset quality held up well and net NPA of 1.19 per cent placed the bank amongst the best in the industry. The provision coverage ratio was maintained along guided lines at 65.14 per cent," Federal Bank MD and CEO Shyam Srinivasan said.

The bank's board also declared final dividend of Rs 0.70 per equity share. Shares of Federal Bank on Monday closed 2.45 per cent higher at Rs 81.65 on the BSE.

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