The private sector bank's net profit increased 59% to Rs 478 crore on 7% fall in total income to Rs 3832 crore in Q4 FY21 over Q4 FY20.
Profit before tax in Q4 FY21 stood at Rs 642.76 crore, up 64% from Rs 391.82 crore in Q4 FY20. Operating profit (before provisions and contingencies) dropped by 8% year on year to Rs 885 crore in Q4 FY21.Net Interest Income (NII) improved 17% to Rs 1,420 crore in Q4 FY21 from Rs 1,216 crore in Q4 FY20. Net Interest Margin (NIM) rose to 3.23% in Q4 FY21 from 3.04% in Q4 FY20.
The bank's total provisions for Q4 FY21 stood at Rs 407 crore as compared to Rs 658 crore for Q4 FY20. The Provision Coverage Ratio stood at 65.14% as on 31 March 2021. The Capital Adequacy Ratio (CRAR) of the bank, computed as per Basel III guidelines, stood at 14.62% as on 31st March 2021. The bank's fresh slippages were at Rs 1,685 crore & write-offs Rs Rs 379 crore in Q4 FY21.
On the asset quality side, gross non-performing assets (NPAs) stood at Rs 4602.39 crore as on 31 March 2021 as against Rs 3470.18 crore as on 31 December 2020 and Rs 3530.83 crore as on 31 March 2020.
The gross NPA ratio stood at 3.41% as on 31 March 2021, compared to 2.71% on 31 December 2020 and 2.84% as of 31 March 2020. The net NPA ratio rose to 1.19% as on 31 March 2021 from 0.6% as on 31 December 2020 and 1.31% as on 31 March 2020.
The bank's net profit rose 3.08% to Rs 1,590.30 crore in the year ended 31 March 2021 from Rs 1,542.78 crore posted in the year ended March 2020. Total income rose by 3.7% to Rs 15,702.82 crore in FY21 over FY20.
The total business of the bank reached Rs 3,04,523.08 crore as on 31 March 2021 compared with Rs 2,74,557.99 crore as on 31 March 2020, registering a growth of 10.91%.
Commenting on the results and financial performance, Shyam Srinivasan, MD & CEO of Federal Bank said, "We delivered our highest every quarterly profit despite an extremely challenging environment. Some of the segments such as Gold Loans and CASA continue to shine for us with gold loans registering a staggering growth of 70.05%. The Asset quality held up well and Net NPA of 1.19% placed the bank amongst the best in the industry. The provision coverage ratio was maintained along guided lines at 65.14%. The bank has several new initiatives lined up and would be launching Credit Cards for its customers shortly."
Gross advances reached Rs 1,34,876.71 crore as on 31 March 2021 from Rs 1,24,153.18 crore as on 31 March 2020, registering a growth of 8.64%. Retail advances grew by 18.57% to reach Rs 44,910.14 crore as on 31st March 2021 from Rs 37,877.97 crore as on 31 March 2020. Gold loans registered a staggering growth of 70.05% to reach Rs 15,816.00 crore as on 31 March 2021.
Deposits recorded a growth of 13.37% to reach Rs 1,72,644.48 crore as on 31 March 2021 from Rs 1,52,290.09 crore as on 31 March 2020. The CASA deposits reached Rs 58,370.48 Cr as on 31 March 2021. CASA Ratio stood at 33.81%.
Meanwhile, the board has recommended the payment of final dividend of Re 0.70 per equity share.
Federal Bank operates through four segments: treasury, corporate or wholesale banking, retail banking and other banking operations. The bank has 1272 branches, 1947 ATMs/ Recyclers as on 31 March 2021.
Shares of Federal Bank were down 2.01% at Rs 78.10 on BSE.
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