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Federal Bank’s Net Profit surges by 26% to reach Rs.210.15 crore

Published in Banking & Finance Wednesday, 26 July 2017 15:12


   


Federal Bank announced the Unaudited Financial Results for the quarter ended 30th June 2017. The key highlights of the results on a Y-o-Y basis are as follows:

    Operating profit sees a growth of 31%
    Total Business increases by 22.74%
    Total Deposits increase by 18.13%
    NRE Deposits increases by 16.34%
    Total advances increases by 29.08%
    SME Advances clocks a growth of 9.54%
    Net Profit soars to Rs. 210.15 Cr registering a growth of 26%

Balance Sheet
The Total Business of the Bank registered a Y-o-Y growth of 22.74% to reach Rs.1,72,145.95 Cr as on 30th June 2017. While Total Deposits increased by 18.13% to reach Rs. 95,838.84 Cr, Total Advances grew by 29.08% to Rs. 76,307.11 Cr as on 30th June 2017.

CASA Deposits of the Bank grew 20.33% Y-o-Y to reach Rs. 32,048.03 Cr. CASA as a percentage to Total Deposits increased to 33.44% as against 32.83% during the corresponding period last year. NRE Deposits grew by 16.34% from Rs. 32,120.83 Cr to Rs. 37,370.46 Cr.

On the Asset side, while SME Advances registered a growth of 9.54% to touch Rs. 16,786.45 Cr, the Large Corporate Advances of the Bank records a growth of 45.59% to reach Rs. 30,126.86 Cr.


Operating Profit & Net Profit
The Operating Profit of the Bank as on 30th June 2017 stood at Rs. 557.86 Cr up from Rs. 425.86 Cr as at the end of Q1FY17. While the Total Income grew 17.20% Y-o-Y to reach Rs. 2653.20 Cr, other income recorded a Y-o-Y growth of 31.34% from Rs.250.57 Cr for the quarter ended 30th June 2016 to Rs. 329.10 Cr for the quarter ended 30th June 2017. The Net Profit of the Bank as at the end of the current quarter stood at Rs. 210.15 Cr registering a Y-o-Y growth of 25.61%.

Margins
Net Interest Income grew 15.68% on a Y-o-Y basis from Rs. 692.17 Cr during the corresponding quarter last year to Rs. 800.68 Cr this quarter. Net Interest Margin as on 30th June 2017 stood at 3.13%.

Asset Quality
The Gross NPA of the Bank as at the end of the quarter stood at Rs. 1867.94 Cr, which as a percentage to Gross Advances comes to 2.42%. The Net NPA as on 30th June 2017 stood at Rs. 1061.26 Cr, and the Net NPA as a percentage to Net Advances is at 1.39%. The Provision Coverage Ratio is 70.26%.
   
NET WORTH & CAPITAL ADEQUACY
Bank’s Net worth on a Y-o-Y basis increased from Rs. 8093.29 Cr to Rs. 11541.90 Cr as on 30th June 2017. The Capital Adequacy Ratio (CRAR) of the Bank, computed as per Basel III guidelines stood at 15.28% as at the end of the quarter.

Footprint
The Bank has 1252 branches and 1678 ATMs as on 30th June 2017.

Q1FY17 Vs Q1FY18

•    Total Income for Q1 grew by 17.20% on a y-o-y basis to Rs. 2653.20 Cr.
•    Net Interest Income increased by 15.68% to Rs. 800.68 Cr
•    Total Deposits increased by 18.13% from Rs. 81,132.11  Cr to Rs. 95,838.84 Cr.
•    Savings deposits grew by 18.65% to reach Rs. 26,896.39 Cr
•    CASA grew by 20.33% to reach Rs. 32,048.03 Cr
•    CASA ratio improved to reach 33.44%.
•    NRE deposits grew by 16.34% to reach Rs. 37,370.46 Cr
•    Advances increased by 29.08% from Rs. 59,117.68 Cr to Rs. 76,307.11 Cr.
•    SME Advances registered a growth of 9.54% to reach Rs. 16,786.45 Cr.
•    Investments stood at Rs. 26,691.34 Cr
•    Book Value per share increased to 59.42 from 47.07

WORKING RESULTS AT A GLANCE
                    (Rs.in Crore)
Particulars    Q1    Q1    % y-o-y growth
    2017-18    2016-17   
Interest Income    2324.10    2013.27        15.44
Other Income    329.10    250.57        31.34
Total Income    2653.20    2263.84        17.20
Net Interest Income    800.68    692.17        15.68
Operating Profit    557.86    425.86        31.00

MAJOR FINANCIAL INDICATORS (Standalone nos)
                                                                                                                                                            (Rs. in Cr)
Business Figures    As on 30.6.2017    As on 30.6.2016    Growth (%)
Total Deposits    95838.84    81132.11     18.13%
SB & Demand Deposits    32,643.24    27323.94    19.47%
Net Advances    76307.11    59117.68    29.08%
Retail Advances    22226.73    17388.87              27.82%
SME Advances    16786.45    15325.04     9.54%
Agri Advances    7946.77    6445.05              23.30%
Investments    26691.34    22850.96     16.81%
Capital           
Equity Capital    388.46    343.87   
Net Worth    11541.90    8093.29    42.61%
Capital Adequacy (%)    15.28    13.59   
Tier I (%)    14.72    12.99   
Tier II (%)    0.56    0.60   



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