KOCHI: The 14-year period Federal Bank went through since September 23, 2010, will certainly be marked as ‘Shyam Srinivassan era’ in the bank’s growth story.
The period under the illustrious captaincy of Shyam Srinivasan, one of the longest-serving and most impactful leaders in the bank’s history, is set to conclude next month.
Srinivasan’s tenure has been marked as a period when the bank witnessed significant growth and transformation on different spheres.
Technology gets leg up
It has indeed been a period of substantial growth, focusing on technology adoption, customer experience, and expansion of the bank’s footprint.
Federal Bank has made significant strides in digital banking, offering services like FedMobile, FedNet, and FedBook, which have enhanced customer convenience, and expanded its digital footprint during this period
Fintech Collaborations
The period also witnessed the bank partnering with fintech companies to leverage technology for better service delivery, particularly in areas like payments, lending, and customer on-boarding. Federal Bank has expanded its international operations, particularly in the Middle East, to better serve its NRI customers during the ‘Srinivasan era’.
No hard feelings
Though requests for an interview with Srinivasan have consistently been declined by the bank, businessbenchmark.news has no hesitation to state that Srinivasan has not only set numerous standards for the bank, but has also established remarkable growth milestones for this highly revered financial institution in the state.
Advances
As the largest lender in the state, the advances disbursed by the bank soared by 8.13 times or 813 per cent during his tenure as the bank’s MD & CEO – from a mere Rs27,635.64 crore to Rs2,24,566.35 crores.
The growth rate, when expressed in terms of multiples and percentage points, doesn’t fully capture the true impact, as the results of the current quarter, ending on September 30, also reflect the contributions of Srinivasan, who still officiates as CEO & MD of the bank.
Net profit
The quarterly net profit has grown by 6.46 times from a sheer Rs140.40 crore (Q2-2010-2011) to Rs854 crore for the first quarter of FY25, being the highest ever quarterly net profit in the bank’s history.
Federal Bank has establishes several ‘firsts’ during the quarter that went by (ending June 30, 2024) including the largest advances, largest net interest income (NII), largest deposit book, largest operating profit and so on.
Most likely, the upcoming quarter (July-September) too will unravel such new records
Assets surge 7 times
The size of the bank expressed in terms of total assets has surged from Rs44,120.36 crore as on September 30, 2010 to Rs3,08,312 crore, reflecting a jump of 6.99 times or 699 per cent during this 14-year period.
The net worth of the bank or the real value of the bank also increased considerably during the period, growing 6.32 times from Rs4,791.68 crore to a whopping Rs30,300.84 crore.
Net worth too surges
The growth in net worth has not been commensurate with that of the growth in bank’s advances or even the assets, and maybe due to this, the bank is not in a position to boast a ‘great’ capital adequacy ratio (CAR), which is currently at 15.57 per cent.
The total income of Federal Bank for a quarter improved from Rs1,122.38 crore to Rs7,246.06 crore, representing a growth of 6.46 times during the period under review.
Meanwhile, the deposit base of the bank experienced significant growth increasing 7.37 times – from just Rs36,115.96 crore as of September 30, 2010 to Rs2,66,064.69 crore by the end of the first quarter of the current financial year on June 30, 2024.
