Friday, May 18, 2012

Federal Bank Q4 net up 38% on higher NII & lower provision


Private sector lender Federal Bank on Friday reported a jump of 38% year-on-year in its fourth quarter (Jan-March, FY12) net profit at Rs 238 crore, aided by higher interest income and lower provisioning. Net interest income or the difference between interest earned and paid out, rose nearly 10% y-o-y to Rs 491 crore.

Provisions including tax came down by 38% y-o-y to Rs 135 crore on the back of improved asset quality. Gross non-performing asset ratio fell to 3.35% compared with 3.49% in the same quarter previous year. Net NPA ratio too decreased from 0.60% to 0.53%.

"We have restructured around Rs 920 crore assets during the quarter. Major chunk at around Rs 800 crore has come from aviation industry and state electricity boards. We do not have any major restrcuturing case in the pipeline. Asset quality would improve in FY13," Shyam Srinivasan, MD & CEO told Moneycontrol.com in a conference call.

According to P C John, Executive Director, Federal bank, the lender wrote back Rs 41 crore due to a decrease in NPAs. This led to reduction in NPA provisions.

The bank's net profit rose 32% y-o-y to Rs 777 crore for the financial year ended March 31, 2012. Loans expanded more than 18% y-o-y to around Rs 38,000 crore.  Corporate loans forms around 45% while retail credit constitutes 28%.  

"In FY13, we are focussing more on retail credit. Both home and gold loans should grow 25-28% in the current year. We are not violating any regulatory norms on gold loans, which currently stands at around Rs 3,600 crore," Srinivasan said.

The lender's home loan portfolio stood at Rs 5,000 crore. In Federal Bank, you can avail a maxium of Rs 70-75 loan against the property value of Rs 100.

Its deposits grew at 14% to Rs 49,000 crore. The bank, known for its strong non-resident India customer base, recorded an increase of 35% in its NRI deposits at Rs 11,184 crore during the year.

The bank has proposed to pay a dividend of Rs 9 per share. Its capital adequacy ratio was down at 16.64% versus 16.79%, y-o-y.


Source: www.moneycontrol.com

Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd 

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