Federal Bank Q3FY15 Performance Review

Federal Bank announced unaudited Financial Results for the period ended 31^st December 2014. Putting in an impressive performance during the period, the Bank registered growth in business volumes and operating metrics apart from improving upon its asset quality. The Net Profit of the Bank grew by 29.13% to reach Rs. 725.22 Crore as on 31.12.2014 as against Rs. 561.60 Crore as on 31.12.2013. The key highlights of the Bank’s performance are given below.

Asset Quality – The Gross NPA and Net NPA came down in absolute and percentage terms on a Y-o-Y basis. The Gross NPA of the Bank came down from Rs. 1201 Cr to Rs. 1067 Cr and Gross NPA as a percentage to Gross Advances came down by 64 bps from 2.83% to 2.19%. Net NPAs also fell from Rs. 356.26 Cr to Rs. 332.94 Cr during the period. Net NPA% decreased by 17 bps from 0.86% to 0.69%. PCR (Provision Coverage Ratio) including technically written off assets of the bank stood at 84.96%.

Advances – SME Advances of the Bank grew by 17.65%, from Rs. 10190 Cr to Rs. 11988 Cr on a Y-o-Y basis.  Retail Advances grew by 15.34% from Rs. 13603 Cr to Rs. 15689 Cr. Agricultural advances increased by 26.77% from Rs. 4582 Cr to Rs. 5809 Cr.

Deposits – The Bank continued to build on its strong NRI franchise posting a Y-o-Y growth of 27.84% in NRE deposits, which stood at Rs. 22344.11 Crore as on 31.12.2014. The Low Cost Deposits (CASA) grew by 14.03% Y-o-Y and stood at Rs. 19985.01 Crore as on 31.12.2014. CASA as a percentage of Total Deposits stood at 30.49%. Total Deposits of the Bank grew 13.53% Y-o-Y to reach Rs. 65550.43 Cr as on 31.12.2014 as against Rs. 57737.15 Cr during the corresponding quarter last fiscal.

Margins - Net Interest Income grew by 7.62% from Rs. 545.57 Crore to Rs. 587.16 Cr on a Y-o-Y basis. Other Income increased by 40.74% and stood at Rs. 219.91 Cr vis-à-vis Rs. 156.25 Crore reported in Q3 FY14. Net Interest Margin stood at 3.20%. Operating Profit increased by 20.08% on a Y-o-Y basis from Rs. 330.90 Crore to Rs. 397.35 Crore. The Net Profit for the quarter ended 31.12.2014 went up by 15.02% at Rs. 264.69 Crore as against Rs. 230.13 Crore earned during the corresponding quarter last year.

Footprint Expansion – The Bank continued to expand its footprint and added 6 branches and 35 ATMs during the quarter to take the tally to 1220 branches and 1470 ATMs as at December 31, 2014.

Performance for the quarter ended 31.12.2014 Vs quarter ended 31.12.2013

• Total Income grew by 10.24% to Rs. 2090.01 Cr as against Rs. 1895.92 Cr.

• Net profit increased by 15.02% from Rs. 230.13 Cr to Rs. 264.69 Cr.

• Net Interest Margin (NIM) at 3.20%

• Total Deposits increased by 13.53% from Rs. 57737.15 Cr to Rs. 65550.43 Cr.

• Advances increased by 15.34% from Rs. 41639.96 Cr to Rs. 48025.89 Cr.

• Investments stood at Rs. 24424.10 Cr.

• Gross NPA came down to 2.19% from 2.83%

• Net NPA improved from 0.86% to 0.69%.

• Return on Average Assets increased to 1.38% from 1.31%

• Earnings Per Share (annualized) increased from Rs. 10.76 to Rs. 12.37

• Book Value per share increased from Rs. 78.33 to Rs. 89.71

• Capital Adequacy Ratio (Basel III) stood at 14.51%

• Return on Equity improved to 14.03% from 13.86%.

• Cost to Income ratio stood at 50.77%

• CASA ratio improved from 30.36% to 30.49% as on 31/12/2014.

• NRE Deposits grew by 27.84% to Rs. 22344.11Cr from Rs. 17478.30 Cr.

• SME advances grew by 17.65% to Rs. 11988.31 Cr from Rs. 10190.23 Cr.

• Retail advances grew by 15.34% to Rs. 15689.49 Cr from Rs. 13603.07 Cr.

• Other Income increased by 40.74% and stood at Rs. 219.91 Crore vis-à-vis Rs. 156.25 Crore            

Working Results at a Glance

(Rs. in Crore)

Major Financial Indicators

Awards and Accolades

Federal Bank won the following awards during Q3 FY 2014-15:

• Federal Bank bagged the CNBC TV18 Financial Inclusion Award for the path breaking work done by the Bank towards the cause of Financial Inclusion and empowerment of those at the bottom layer of the economy.

• Federal Bank was chosen as the Best Bank among small banks in India in the Best Bank Survey, 2014 conducted by BusinessWorld - Price Waterhouse Coopers combine.

For more information and results table, click here