BBN Bureau
Proposes Rs1.80 cash dividend against each Rs2 share
KOCHI/May 06-2022: Federal Bank, the largest Kerala-incorporated bank, has reported a 13.18 per cent year-on-year growth in its fourth quarter (Q4) net profit from Rs478 crore to Rs541 crore as the financial years closed on March 31, 2022.
This is considered the largest ever quarterly profit reported by any bank in the state.
The sequential growth in profit for the said quarter was marginal at 3.64 per cent from Rs522 crore. The bank has reported 18.83 per cent rise in its full year (FY22) net profit from Rs1590.30 crore a year ago to Rs1889.82 crore for FY22.
90 pc dividend
The board has proposed a cash dividend of 90 per cent on the face of the share priced at Rs2, amounting to Rs1.80 apiece. This is 2.57 times the cash dividend the bank gave away last year at Rs0.70 per share.
Total assets of the bank grew 10 per cent year on year to Rs2.20 lakh crore as of March end, 2022.Total advances increased 9.46 per cent, from Rs1,35 lakh crore to Rs1,48 lakh crore year on year.
Gold loan portfolio further expanded 9.48 per cent year on year, from Rs15,816 crore to Rs17,316 crore as of March 31, 2022.
Net interest margin (NIM) slipped from 3.23 per cent to 3.16 per cent year on year whereas sequentially the decline of NIM was from 3.27 per cent logged for December end, 2021.
Shyam Srinivasan (seen in the pucture), Managing Director & CEO of Federal Bank said the bank has delivered an encouraging performance for FY22, notwithstanding the turbulent times outside.
“Despite the absorption of a large one-off expense, the return on assets (RoA) and return on equity (RoE) have met the guided levels of 1.03 per cent and 11.93 per cent respectively,” Srinivasan said.
Cost-to-income ratio up
Federal Bank may have failed on curbing the cost of operations this time with the cost-to-income ratio having soared to 59.89 per cent, which is one of the highest for the bank in the recent times.
NPA declines
The gross NPA declined marginally from Rs4401 crore to Rs4137 crore year on year. On percentage terms, the GNP has declined from 3.41 per cent to 2.80. Net NPA on the other hand, is at a very comfortable level, at 0.96 per cent as of March end, 2022.
During the year under discussion, while the earnings per share (EPS) improved from Rs9.71 to Rs10.43, the book value (BV)of the share has improved 9.88 per cent from Rs80.77 a year ago, to Rs88.75 as of March 31, 2022.
