Federal Bank Net profit up by 20% at Rs. 1005.75 Cr

Federal Bank announced the audited financial results for the year ended 31st March 2015 today at Kochi. The Bank recorded strong performance in terms of growth in all key parameters despite the challenging environment. The key highlights of the results are:

- Net Profit breaches Rs. 1000 Cr landmark

- Both Deposits and Advances outgrow Industry by more than 40%

- Gross NPA reduced by one-third over a period of 2 years, bucking Industry trend                                                                                                                                                                                                                                               

Operating Profit & Net Profit

The Bank posted its highest ever Operating Profit and Net Profit, the latter breaching the Rs. 1000 Cr landmark for the first time in history. Net Profit grew 20% YOY from Rs. 838.89 Cr in FY14 to Rs. 1005.75 Cr in FY15. Operating Profit grew 9.96% from Rs. 1480.39 Cr in FY 14 to Rs. 1627.79 Cr in FY15. Other income grew 26.58% from Rs. 693.85 Cr as on 31.03.2014 to Rs. 878.31 Cr as on 31.03.2015.

Margins

Net Interest Income grew 6.81% from Rs. 2228.61 Cr in FY14 to Rs. 2380.41 Cr in FY15. Net Interest Margin improved sequentially by 11 basis points from 3.20% to 3.31%.

Balance Sheet

The Total Business of the Bank increased by 18.36% to Rs. 122109.98 Cr for the year ended 31^st March 2015.

Total Deposits of the Bank as on 31^st March 2015 stood at Rs. 70824.99 Cr, up 18.57% over the year ended 31^st March, 2014 as against an Industry growth rate of 12.78%. NRE Deposits recorded an impressive growth of 27.71% to Rs. 24230.90 Cr from Rs. 18973.56 Cr as on 31^st March 2014. CASA grew 17.11% to reach Rs. 21549.57 Cr as on 31^st March 2015. CASA as a percentage to Total Deposits stood at 30.43%.

Net Advances outpaced industry growth of 12.64% by growing 18.07% to reach 51284.99 Cr as on 31^st March 2015. While Retail Advances went up by 14.24% to Rs. 16134.58 Cr, SME Advances posted a 17.21% increase to reach Rs. 12917.84 Cr. Agricultural Advances increased 22.83% to Rs. 6311.86 Cr as on 31^st March 2015. Priority Sector Lending of the Bank registered a healthy increase of 29.30% from Rs. 16141.47 Cr as in FY14 to Rs. 20870.27 Cr in FY15. Priority Sector Advances as a percentage to ANBC stood at 44.34%, well above the mandated 40%.

Asset Quality

The bank continued to improve its Asset Quality in FY15. Gross NPA de-grew by 2.73% and stood at Rs. 1057.73 Cr as against Rs. 1087.41 Cr as on 31^st March 2014. Net NPA stood at Rs. 373.27 Cr as on 31^st March 2015. Gross NPA as a percentage of Gross Advances reduced by 42 bps to 2.04% from 2.46% as on 31^st March 2015. Net NPA as a percentage to Net Advances stood at 0.73% as against 0.74% in FY14. The Provision Coverage Ratio (including technical write-offs) stood at a healthy 83.94%. The total of restructured standard assets and Gross NPA as a percentage of gross advances came down from 8.18% to 7.05% on a YOY basis.

NET WORTH & CAPITAL ADEQUACY

The Net Worth of the Bank increased to Rs. 7738.14 Cr as on 31.3.2015. The Capital Adequacy Ratio (CRAR) of the Bank, computed as per Basel III guidelines, stands at a comfortable level of 15.46 % as on 31^st March 2015.

The Earning per Share (annualized) and Book Value per share for the year ended FY15 increased to Rs. 11.75 and Rs. 90.33 as against Rs. 9.81 and Rs. 80.36 in FY14. Return on average Equity (RoE) and Return on Assets for the year ended 31.03.2015 increased to 13.77 % & 1.32 % resp. from 12.80 % & 1.20 % resp. as on 31.03.2014.

DIVIDEND

The Board of Directors recommended 110% dividend for the year ended March 31, 2015 (Rs. 2.20 per equity share of Rs. 2 face value). This would be subject to approval by the share holders at the forthcoming annual general meeting.

Footprint

The Bank continued to expand its footprint and added 73 branches and 126 ATMs during the year to take the tally to 1247 branches and 1485 ATMs as on 31^st March 2015. The Bank also has its Representative Office at Abudhabi, UAE.

Major Highlights: FY 2014-15 (Standalone nos.)

• Total income for the year grew by 8.61% to Rs. 8297.77 Cr.

• Other Income grew by 26.58 % from Rs. 693.85 Cr to 878.31 Cr

• Net profit increased by 20% to 1005.75 Cr from Rs. 838.89 Cr.

• Net Interest Income increased by 6.81 % to Rs. 2380.41 Cr.

• Net Interest Margin (NIM) stood at 3.27 %

• Total Deposits increased by 18.57 % from Rs. 59731.28 Cr to Rs. 70824.99 Cr

• CASA increased by 17.11% from Rs. 18400.79 Cr to Rs. 21549.57 Cr

• Advances of the Bank increased by 18.07 % from Rs. 43436.10 Cr to Rs. 51284.99Cr

• Investments stood at Rs. 24409.19 Cr

• Gross NPA of the Bank is at 2.04%

• Net NPA at 0.73%.

• Return on Average Assets increased to 1.32% from 1.20%

• Earnings Per Share increased to Rs. 11.75 from Rs. 9.81

• Book Value per share increased from Rs. 80.36 to Rs. 90.57

• Capital Adequacy Ratio as per Basel III stood at 15.46%

• Return on Equity increased to 13.75% from 12.80%

• Cost to Income ratio stood at 50.05%                                                                                                                                                                                                                                                                                                                                                                                                                                                   

WORKING RESULTS AT A GLANCE (Standalone nos.)

(Rs. in Crore)

MAJOR FINANCIAL INDICATORS (Standalone nos.)

(Rs. in Cr)