Federal Bank Q4 results: Profit flat at Rs 906 crore; dividend announced; stock up 2%

Shares of Federal Bank Ltd were trading 2 per cent higher in Thursday's trade after the private lender's March quarter results. The lender said its profit for the quarter was up 0.4 per cent year-on-year (YoY) at Rs 906 crore compared with Rs 903 crore in the same quarter last year. Net Interest Income (NII) for the quarter rose 14.97 per cent YoY to Rs 2,195 crore from Rs 909 crore YoY.

Fee income was up 14 per cent at Rs 620 crore. Following its quarterly results, the banking stock was trading 2.22 per cent higher at Rs 166.10 on BSE.

Managing Director & CEO Shyam Srinivasan said: “With a 10 per cent increase in our footprint, our branches now dot the map, across the length and breadth of India. The physical distribution is buttressed with significant investments in Technology and Digital capabilities, helping us serve clients in over 15000 pin codes." 

The Federal Bank board recommended final dividend of Rs 1.20 per equity share of the face value Rs. 2 each (60%) for the financial year 2023-24 subject to the approval of the Shareholders at the ensuing Annual General Meeting (AGM) of the lender.

The bank said its total business reached Rs 4,61,937.36 crore, up 19.11 per cent YoY, as on March 31, 2024. On the asset side, net advances rose to Rs 2,09,403.34 crore on March 31, 2024 from Rs 1,74,446.89 crore YoY.

Retail advances grew 20.07 per cent to reach Rs 67,435.34 crore.  Banking advances were up 21.13 per cent at Rs 17,072.58 crore. Commercial banking grew 26.63 per cent to Rs 21,486.65 crore. Corporate advances rose 11.97  per cent at Rs 73,596.09 crore. The CV/ CE advances grew 57.45 per cent to Rs 3,441.80 crore.

Total Deposits were up 18.35 per cent to Rs 2,52,534.02 crore against from Rs 2,13,386.04 crore YoY. 

Return on asset (ROA) and return on equity (ROE) for the quarter stood at 1.22 per cent and 12.75 per cent, respectively. Gross NPA of the Bank stood at Rs 4,528.87 crore, which as a percentage to gross advances stood at 2.13 per cent. The net NPA and net NPA as a percentage to net advances as on March 31 stood at Rs 1,255.33 crore and 0.60 per cent, respectively.

Provision Coverage Ratio excluding technical write off stood at 71.08 per cent. The net worth of the bank rose 35.81 per cent from Rs  21,419.49 crore to Rs 29,089.41 crore. Capital Adequacy Ratio (CRAR), computed as per Basel III guidelines
stood at 16.13 per cent as at the end of the quarter.