Federal Bank posts 25% rise in net profit on lower provisioning

Federal Bank on Tuesday reported a 25% increase in its June quarter net profit due to lower provisioning and higher net interest income. Net profit for the quarter stood at Rs 262.71 crore against Rs 210.15 crore a year ago. According to 13 Bloomberg analysts’ estimates, the bank was expected to post a profit of Rs 211.70 crore.

Net interest income (NII), or the core income a bank earns by providing loans, was up 22.4% to Rs 980.06 crore from Rs 800.67 crore last year. Other income was at Rs 270.86 crore, down 17.7% from Rs 329.10 crore a year ago.

Provisions and contingencies fell 15.77% to Rs 199.15 crore in the quarter from Rs 236.44 crore a year ago. On a quarter-on-quarter basis, these declined 46.4% from Rs 371.53 crore.

Gross non-performing assets (NPAs) rose 53.58% to Rs 2,868.82 crore at the end of the June quarter from Rs 1,867.94 crore in the same quarter last year.

As a percentage of total loans, gross NPAs stood at 3% as compared to 3% in the previous quarter and 2.42% in the year-ago quarter. Net NPAs were at 1.72% in the June quarter compared to 1.69% in the previous quarter and 1.39% in the same quarter last year.

Federal Bank said it incurred mark-to-market losses of Rs 58.94 crore as of June 2018 and according to the Reserve Bank of India’s norm, it has exercised the option of spreading the provisions equally over four quarters. Accordingly, in the June quarter Rs 14.74 crore has been charged towards MTM losses and the balance of Rs 44.21 crore has been carried forward and will be amortised in remaining quarters, the bank said.

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Federal Bank Q4 profit down 44%

Federal Bank missed analyst expectations to report a 43.5 percent year-on-year (YoY) drop in net profit at Rs 145 crore for the March quarter because of an increase in provisions and worsening asset quality.

Net profit in the same quarter last year had shot up 2,400 percent to Rs 256.6 crore due to substantially lower provisions and reduction in non-performing assets (NPAs).

Slippages were to the tune of Rs 872 crore for the fourth quarter, of which Rs 492 crore was from one account, said the bank.Provisions grew by almost 203 percent to Rs 371.53 crore in the March quarter, on a year-on-year basis.

Net interest income (interest earned minus interest expended) grew 11 percent to Rs 933.22 crore from Rs 842 crore in the same quarter last year. A Reuters analyst poll had estimated net profit growth of 14 percent to Rs 293.7 crore and NII at Rs 1,008.7 crore for the quarter.

The bank also made provisions for the increase in the gratuity ceiling for employees after a government notification enhanced it to Rs 20 lakh from Rs 10 lakh.

In its earnings statement, the bank said it has made gratuity provisions taken to the tune of Rs 18 crore in Q4 and that a similar amount will be spread over each of the next three quarters with a total of Rs 72 crore.

Asset quality

During the quarter, the gross non-performing assets (NPAs) worsened to 3 percent of total loans from 2.52 percent in the December quarter and 2.33 percent a year back. Net NPA rose to 1.69 percent in the March quarter compared to 1.28 percent a year ago and 1.36 percent in the December quarter.

The Board of Directors has recommended a dividend of 50 percent at Rs 1 per equity share for  FY18, subject to the approval at its Annual General Meeting.

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Federal Bank Q3 net rises 26%

Federal Bank has posted a 26.43 per cent growth in net profit in the third quarter at Rs260.01 crore compared to the corresponding period of the previous fiscal. The operating profit increased by 18 per cent to reach Rs 561.40 crore as on December 31.

The total business grew 14.60 per cent from Rs 1,61,864.87 crore to Rs.1,85,490.17 crore. While total deposits reached Rs 1,00,537.10 crore from Rs92,235.65 crore, net advances grew 22.01 per cent to reach Rs 84,953.08 crore.

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Federal Bank Q2 net profit rises 31%

Federal Bank Ltd on Monday reported a 31% jump in its September quarter net profit due to improved asset quality and higher net interest income.

The bank reported a profit of Rs263.70 crore compared to Rs201.24 crore a year ago. The consensus of analyst estimates had pegged the profit at Rs254.40 crore.

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Federal Bank Recruitment of Officers & Clerks 2017

Federal Bank has published Advertisement for below mentioned Posts 2017. Other details like age limit, educational qualification, selection process, application fee and how to apply are given below.

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Federal Bank Q1 profit up 26% at Rs. 210 cr

Private sector lender Federal Bank has registered a rise of 25.6 per cent in its net profit at Rs. 210.15 crore for first quarter of the current fiscal on higher core income and good returns on investments.

Also, bad loans of the bank came down during the quarter.The bank’s net profit in the corresponding three months to June in 2016-17 stood at Rs. 167.31 crore.Total income of the bank increased to Rs. 2,653.19 crore for the quarter, against Rs. 2,263.84 crore in the year ago period, the bank said in a regulatory filing.

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Federal Bank Recruitment Process for the post of Clerks and Officers 2017

Federal Bank has published Advertisement for below mentioned Posts 2017. Other details like age limit, educational qualification, selection process, application fee and how to apply are given below.

Posts:

• Clerk
• The candidate shall not exceed 24 years as on 01.06.2017 (candidates should be born on or after 01.06.1993) for being eligible for the post of Clerk.
• Candidates who completes / had completed Graduation with minimum 55% marks for Science discipline and minimum 50% marks for other streams during academic year 2016-17 (passed out in May / June 2017) from any recognized university or other institutions established by an Act of Parliament or declared to be deemed as a University under Section 3 of U G C Act, 1956.

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Federal Bank Q4 result, profit jumps 25 times

Private sector lender Federal Bank's fourth quarter profit shot up nearly 25 times to Rs 256.6 crore compared with same quarter last fiscal, driven by improvement in asset quality and lower provisions.Net interest income during the quarter grew 23 percent to Rs 842.4 crore, with loan growth of 26 percent at Rs 73,336.27 crore compared with year-ago quarter.

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