Federal Bank Wraps Up FY 24 With 24% Rise in Profit, highest NII, Maintains Robust Asset Quality

Federal Bank announced the Financial Results for the quarter and year ended 31^st March 2024. The key highlights of the results on a Y-o-Y basis are as follows:

• Total Business of the Bank reached Rs 4,61,937.36 Cr.

• Highest Ever NII, up by 14.97% to ₹ 2195.11 Cr.

• Net Profit at Rs.906.30 Cr.

• Operating Profit at Rs.1,110.35 Cr

• ROA for Q4 stood at 1.22 % and ROE stood at 12.75 %.

• GNPA and NNPA at 2.13% and 0.60% respectively.

• Total Deposits increased by 18.35 %.

• Total Net Advances increased by 20.04 %.

WORKING RESULTS AT A GLANCE                                             (Rs.in Cr)

Operating Review

Total Business

Total Business of the Bank reached Rs. 461937.36 Cr registering a growth of 19.11% as on 31^st March 2024.

Credit Growth

On the Asset side, Net advances increased from Rs. 174446.89 Cr as on 31st March 2023 to Rs. 209403.34 Cr on 31^st March 2024. Retail Advances grew by 20.07 % to reach Rs.67435.34 Cr. Business Banking advances grew by 21.13 % to reach Rs.17072.58 Cr. Commercial Banking grew by 26.63% to Rs.21486.65 Cr. Corporate Advances registered a growth of 11.97 % to reach Rs.73596.09 Cr. The CV/ CE advances grew by 57.45 % to reach Rs 3441.80 Cr.

Deposit Growth

Total Deposits increased from Rs.213386.04 Cr as on 31^st March 2023 to Rs.252534.02 Cr as on 31^st March 2024, registering a growth of 18.35%.

Operating Profit & Net Profit

The Bank registered Operating Profit of Rs.1110.35 Cr and Net Profit of Rs.906.30 Cr for the quarter ended 31^st March 2024.

Income & Margins

Net Interest Income grew 14.97 % from Rs.1909.29 Cr to Rs.2195.11 Cr for the quarter ended on 31st March 2024. Total income of the Bank for the quarter grew by 23.42% to reach Rs.6732.23 Cr. Earnings per share (EPS) annualized is Rs 14.97.

Key Ratios

ROA & ROE of the Bank for the quarter stood at 1.22% and 12.75% respectively.

Robust Asset Quality

Gross NPA of the Bank as at the end of Q4 FY24 stood at Rs. 4528.87 Cr, which as a percentage to Gross Advances stood at 2.13%. The Net NPA and Net NPA as a percentage to Net Advances as on 31^st March 2024 stood at Rs. 1255.33 Cr and 0.60% respectively. Provision Coverage Ratio excluding Technical Write Off was 71.08%.

Net Worth & Capital Adequacy

Net worth of the Bank increased by 35.81%, from Rs. 21419.49 Cr to Rs. 29089.41 Cr, as on 31^st March 2024. Capital Adequacy Ratio (CRAR) of the Bank, computed as per Basel III guidelines stood at 16.13% as at the end of the quarter.

Dividend

The Board of directors at its meeting held today has recommended a dividend of 60% per equity share having face value of Rs.2 for the year ended 31^st March 2024. The dividend will be paid after the approval of shareholders at the Annual General Meeting.

Awards & Accolades

• Recognized as the ‘Bank of the Year 2023’ in India instituted by ‘The Banker’.

• ‘Finnoviti Award’ instituted by Banking Frontiers for ‘Fed-E-Studio’, the self-service Banking kiosk for customers.

• Recognized as ‘ESG Champions of India 2024’ in the Commercial Banks sector at the Dun & Bradstreet ESG Leadership Summit 2024.

• Ranked in the list of ‘Future-ready Workplaces’2024 by Fortune India and CIEL HR

• Won the HR award for Future of Work, Workforce and Workplace (Large Segment) at the People Pioneers Awards 2024, instituted by TechCircle.

• Honored with the Amity Banking Excellence for Sustainable Banking.

• Recognized as the Best AI & ML Bank, Runner-up in Digital Engagement and received a special mention for driving Financial Inclusion.

• Emerged winner in the ‘Best Bank in Fintech Initiative’ by BT Best Bank Awards

• Won the KMA CSR Award in the Environment Sector at the KMA Sustainability Summit

• 1st Runner-Up in the Diversity & Inclusion Excellence Award in the category “Best Employer for Women” (In Large Category) from The Associated Chambers of Commerce and Industry Of India (ASSOCHAM).

Initiatives

• Executed first digital cross border trade transaction, i.e. Bill of Lading, through blockchain. India’s First-Ever Single Bank Digital Export Collection Bill Transaction in partnership with Wave BL. By transitioning to a digital solution, the Bank has reduced the lead time from up to a week to just 3 hours for its clients with the complete elimination of reams of paper.

• Entered into Strategic partnership with Fintech Marketplace to provide leads for MSME clients.

• Tied up with MAGNET (Maharashtra Agribusiness Network) project for funding VCOs/FPOs who are engaged in the selected horticulture crops for post-harvest management and value chain development.

• Issuing electronic BG directly to beneficiary

• WhatsApp Banking including end-to-end lending solution.

• AI- based Virtual assistant for contact center that automates customer calls using AI for enquiries.

Footprint

• 75 new outlets across the country during Q4 taking the total tally for the FY to 141, thereby crossing 1500 outlets for the Bank and 2013 ATMs/ Recyclers as on 31^st March 2024.

MAJOR FINANCIAL INDICATORS (Standalone Nos)                                                         (Rs. in Cr)