Bank raised Rs700 cr through pvt placement of bonds
By CL Jose
KOCHI/January 25-2022: Federal Bank, Kerala’s largest bank with an asset base of Rs2,08,876 crore as of December end, 2021 (Q3/FY22) has reported a year-on-year growth of 29.11 per cent in its net profit for Q3 to Rs521.73 crore.
Sequentially, the bank’s net profit grew by 13.36 per cent from Rs460.26 crore. For the nine months ending December 31, 2021, the bank has earned a net profit of Rs1349.28 crore compared with Rs1112.49 crore the bank generated for the same period las year, representing a smart growth of 21.29 per cent.
A relatively low provision allowance at Rs213.98 crore has also helped Federal Bank come out with a better performance for Q3, 20-21.
On a consolidated basis, the Q3 net profit of the group, which has one subsidiary and two associates, was Rs539.77 crore compared with Rs418.14 crore for the same period a year ago.
Shyam Srinivasan (seen in the picture), MD & CEO, said the bank has delivered strong bottom line with key gains in net interest income (NII), fee income and net interest margin (NIM).
“The net profit for the period improved substantially, and it has helped deliver return on assets (RoA) above 1 per cent,” Srinivasan added.
Rs700 cr raised
The bank raised Rs700 crore Tier II capital on January 20, 2022, by way of issuance of unsecured Basel III-compliant Tier II bonds on a private placement basis
Gross NPA of the bank at Rs4401.26 crore has dropped marginally from the previous quarter (Q2) at Rs4445.84 crore, at the same time having grown by 26.83 per cent from a year ago when the gross NPA was Rs3470.18 crore.
The net NPA has almost doubled during the past one year from Rs757.24 crore to Rs1471.18 crore. On percentage terms, while the gross NPA inched up from 2.71 per cent to 3.06 per cent during the quarter under review, the net NPA grew from 0.60 per cent to 1.05 per cent.
‘Retail’ is real performer
Like most private sector banks, the retail loan portfolio has been the anchor performer for the bank that contributed Rs357.28 crore (before tax), accounting for more than half the full profit for Q3.
While the advances grew from Rs1,34,405 crore to Rs1,40,704 sequentially from the previous quarter, deposits expanded marginally from Rs1,71,995 crore to Rs1,75,432 crore during the same period.
Gold loans book has grown to Rs16,378.00 crore, whereas the net worth of the bank has scaled up to Rs18,087 crore as of December end, 2021, rendering a book value of Rs86.05 for its share.
