Federal Bank Q3 net profit rises 32%

Federal Bank Ltd on Monday said its third quarter net profit rose 32% on the back of higher other income and lower provision.

The bank posted a net profit ₹440.64 crore for the three months ended 31 December compared to ₹333.63 crore in the year-ago period. Profit was higher than ₹412.7 crore estimated by a Bloomberg poll of 15 analysts.

Net interest income, or the difference between interest earned on loans and that paid on deposits, increased 7.21% to ₹1,154.93 crore from ₹1,077.29 crore in the corresponding period last year.

Other income, which includes core fee income, rose 18.03% to ₹407.86 crore in the three months from ₹345.55 crore a year ago.

Gross non-performing assets (NPAs), as a percentage of total advances, were at 2.99% in the December quarter compared with 3.07% in the September quarter and 3.14% in the year-ago December quarter.

Provisions during the quarter decreased 15.39% to ₹160.86 crore as against ₹190.12 crore in the year-ago quarter. In the July-September quarter, the bank had set aside ₹251.77 crore in provisions.

Post-provision, the net NPA ratio was at 1.63% against 1.59% in the July-September quarter and 1.72% in the year-ago quarter.

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Federal bank Q2 Profit up 57%

Private sector lender Federal Bank has reported a healthy 56.7 percent year-on-year growth in Q2FY20 profit, driven by other income and lower tax cost, but provisions remained elevated.

Profit rose to Rs 416.7 crore against Rs 266 crore in same period last year.

Net interest income grew by 9.9 percent YoY to Rs 1,123.8 crore, with loan growth at 14.8 percent.

Asset quality weakened during the quarter under review with gross non-performing assets (NPA), as a percentage of gross advances, rising 8 bps to 3.07 percent and net NPA increasing 10 bps to 1.59 percent quarter-on-quarter.

Fresh slippages at the end of Q2 increased to Rs 540 crore against Rs 415 crore at the end of Q1.

Provisions increased sharply to Rs 251.8 crore versus Rs 192 crore in Q1 FY20 but fell from Rs 288.8 crore in Q2 FY19.

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Federal Bank Q1 Net profit rises 46%

Private sector lender Federal Bank on Tuesday reported a net profit of ₹384 crore in the June quarter of FY20, 46% higher than the same period last year, owing to higher other income and net interest income.

While its other income grew 45% year-on-year (y-o-y) to ₹392 crore, its net interest income – the difference between interest earned and expended – grew 18% y-o-y to₹1,154 crore in Q1 FY20.

The bank also set aside ₹192 crore as provisions in the June quarter of FY20, down 3.5% y-o-y. Federal Bank’s asset quality slightly improved as its gross bad loans as a percentage of gross advances stood at 2.99%, down one basis point from the same period last year.

Shyam Srinivasan, managing director and chief executive, Federal Bank said that while the bank has been watchful of credit growth in certain stressed sectors, retail continues to go do well.

“These stressed sectors include the long-gestation and capital intensive infrastructure projects and therefore we have to be mindful of them," said Srinivasan.

Federal Bank’s total deposits increased by 19.14% y-o-y to reach ₹1.32 lakh crore, its net advances grew by 18.81% y-o-y to ₹1.12 crore as on 30 June, 2019. Its current account and saving account (CASA) deposits stood at₹41,675.84 crore and CASA as a percentage of total deposits stood at 31.44%.

The bank’s total exposure to the non-bank and housing finance companies (HFCs)constitute 14.4% of its total loans.

“We are open to looking at good securitized assets. However, we are not looking at lumpy transactions, maybe ₹100-150 crore. We have not come across assets to the tune of say₹2,000 crore that is of high quality and is available. In the June quarter we had one such transaction of about ₹150 crore," said Srinivasan.

Srinivasan said that the bank’s NBFC approach over the last many quarters has been more quality-led. “If a borrower comes to us with request for new lines of credit and we are not comfortable with that then we decline," he said.

While Srinivasan said that Federal Bank has an exposure to stressed mortgage lender Dewan Housing Finance Corporation Ltd (DHFL), he declined to spell out how much it is. The account is standard at the moment, he added.

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Federal Bank Q4 profit up 2-fold

Federal Bank Saturday reported an over two-fold jump in net profit for the March quarter at Rs 381.51 crore on account of lower provisioning and higher interest income. 

The private sector lender had posted a standalone net profit of Rs 144.99 crore in the fourth quarter of 2017-18 fiscal. 

Total income of the bank rose to Rs 3,444 crore in the March quarter of 2018-19, from Rs 2,862 crore in the same period last fiscal, Federal Bank said in a BSE filing. 

Provisioning for bad loans during the quarter more than halved to Rs 177.76 crore, as against Rs 371.53 crore in the corresponding period of 2017-18. 

Interest income increased to Rs 2,413 crore during the fourth quarter from Rs 1,951 crore earlier. 

For the full 2018-19 fiscal, Federal Bank reported a standalone net profit of Rs 1,243.89 crore, up 41.5 per cent from Rs 878.85 crore in 2017-18. 

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Federal Bank Q3 net profit rises 28% YoY

Kerala based Federal Bank reported a rise of 28 percent (year-on-year) in its net profit for the December quarter at Rs 333.63 crore from Rs 260 crore last year.

The Kochi-based lender also posted a growth of 13 percent (YoY) in its net interest income to Rs 1,077.3 crore against Rs 950 crore posted last year. For the uninitiated, the difference between interest earned and spent is known as net interest income.

Other income reported by the bank stood at Rs 345.5 crore against Rs 228.6 crore last year.

Asset quality

The gross NPA ratio rose margially to 3.14 percent from the previous quarter’s ratio of 3.11 percent. Meanwhile, the net NPA ratio stood at 1.72 percent. It improved from 1.78 percent in the previous quarter.

The gross NPAs stood at Rs 3,361 crore against Rs 3,185 crore posted during the last quarter. While, net NPAs rose to Rs 1,817 crore against Rs 1,796 crore last quarter.

The provisions reported a drop from the previous quarter to Rs 190.1 crore against Rs 289 crore. On a year on year basis, it reported a jump from Rs 162.4 crore.

Other key metrics

The lender reported slippages at Rs 435 crore against RS 477 crore last quarter. The SME slippages stood at Rs 192 crore against Rs 169 crore posted last quarter.

The net interest margin stood at 3.17 percent against 3.15 percent in September quarter.

The loan growth stood at 25 percent year on year, while its restructured book stood at Rs 1,150 crore.

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Federal Bank Q2 profit rises 0.9% hit by higher provisions; asset quality weakens

Federal Bank's second quarter (July-September) profit grew 0.9 percent year-on-year to Rs 266 crore, impacted by sharp rise in bad loans provision. However, other income, operating income and NII helped the bottomline.

Net interest income during the quarter increased 13.7 percent year-on-year to Rs 1,022.5 crore with loan growth at 25.2 percent YoY (9.8 percent QoQ), the bank said.

Net interest margin improved to 3.15 percent for the quarter ended September 2018 against 3.12 percent in previous quarter.

Bank's asset quality weakened further in the quarter gone by. Gross non-performing asset (NPA) as a percentage of gross advances increased to 3.11 percent against 3.00 percent in previous quarter and net NPA was higher at 1.78 percent against 1.72 percent in June quarter.

Federal Bank said provisions and contingencies increased sharply by 45 percent sequentially (63.4 percent year-on-year) to Rs 288.8 crore.

Fresh slippages for the quarter were higher at Rs 477 crore against Rs 461 crore in previous quarter, the bank said, adding the restructured standard assets were at Rs 577 crore in September quarter against Rs 581 crore in June quarter.

Other income (non-interest income) during the quarter grew by 12.4 percent year-on-year to Rs 322.9 crore and operating profit jumped 20 percent to Rs 698 crore.

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RBI imposes penalty on Federal Bank

Kerala-based Federal Bank was fined Rs 5 crore by the Reserve Bank of India (RBI) for not following procedures on reporting of data on large corporate loans, assessment of risk-based supervision (RBS) by RBI, know-your-customer norms and delay in compensation to customer complaints.

On September 25, RBI said it imposed a a monetary penalty of Rs 50 million (Rs 5 crore) on Federal Bank Ltd for for violation of Section 19(2) of Banking Regulation Act.

The penalty was for "non-compliance with the directions issued by RBI on (a) reporting of data on Central Repository of Information on Large Credits (CRILC), (b) reporting to RBI for assessment under RBS, (c) payment of compensation for delay in resolution of ATM-related customer complaints, and (d) Know Your Customer / Anti-money Laundering (KYC/AML) norms," RBI said in a statement on its website.

The central bank has been very active in penalising banks for non-compliance of several RBI rules with the major ones including violation of under-reporting or divergence in classification of non-performing assets (NPAs) and KYC norms.

This penalty has been imposed in exercise of powers vested in RBI under the provisions...of the Act, taking into account the failure of the bank to adhere to the aforesaid provision of the Act and the directions issued by RBI.

This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers, RBI added.

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Federal Bank Recruitment for Officers (Scale I) & Clerks Posts 2018

Federal Bank has published Advertisement for below mentioned Posts 2018. Other details like age limit, educational qualification, selection process, application fee and how to apply are given below.

Posts:

• Officers (Scale I)
• Office Assistants

Educational Qualification:

• Officers :
• Post-Graduates with minimum 60% marks in any discipline from a recognized University or any other Institutions established by an Act of Parliament or declared to be deemed as a University under Section 3 of UGC Act, 1956.
• Candidates should have completed their Post-Graduation during the academic years 2016-17 or 2017-18 (passing out year of their post-graduation should be 2017 or 2018).
• Candidates should have completed their academics (from 10th onwards) in regular mode of study.
• Candidates should have a consistent academic record of minimum 60% marks from class 10th onwards (for 10th, 12th, Graduation and Post-Graduation).


• Clerks
• Graduates or Post-Graduates with minimum 60% marks in any discipline from a recognized University or any other Institutions established by an Act of Parliament or declared to be deemed as a University under Section 3 of UGC Act, 1956.
• Candidates with the highest qualification as Graduation should have completed their Graduation during the academic years 2016-17 or 2017-18 (passing out year should be 2017 or 2018).
• Candidates with the highest qualification as Post-Graduation should have completed their Post-Graduation during the academic years 2016-17 or 2017-18 (passing out year should be 2017 or 2018).
• Candidates should have completed their academics (from 10th onwards) in the regular mode of study.
• Candidates should have a consistent academic record of minimum 60% marks from class 10th onwards (Graduates- 60% for 10th, 12th & Graduation) & (Post Graduates - 60 % for 10th, 12th, Graduation & Post–Graduation).

Age Limit: (As on 01.07.2018)

• Officers – Candidates shall not exceed 26 years as on 01.07.2018 (candidates should be born on or after 01.07.1992) for being eligible to apply for the post of Officers.
• Clerks – Candidates shall not exceed 24 years as on 01.07.2018 (candidates should be born on or after 01.07.1994) for being eligible to apply for the post of Clerks.

Application Fee :

• Officers :
• SC / ST : Rs. 350/-
• General / Others: Rs. 700/-
• Clerks :
• SC / ST : Rs. 250/-
• General / Others: Rs. 500/- 

Important Note :

Candidates are eligible to apply only if they have completed their Graduation or Post-Graduation in the stipulated academic years. In the case of candidates whose final results of the qualifying examination is yet to be published by the University / Institution by 27.08.2018, they are eligible to apply only if, they:

Have cleared all the papers of previous year/semesters of qualifying examination and secured minimum marks of 60% as on 27.08.2018 and all papers pertaining to the subsequent semester(s)/ years should be cleared invariably in the first chance itself with an aggregate of 60% marks in the qualifying examination.

Submit their final certificates/results at the time of joining or as demanded by the Bank

Important Dates:

Opening Date of Online Registration Gateway/Remittance of Application fee : 14th August 2018

Closing Date of Online Registration Gateway/Remittance of Application fee : 27th August 2018

Proposed Date of Online Aptitude Test for Officers and Clerks : 9th September 2018

How to Apply: Interested Candidates may Apply Online Through official Website.

Apply Online: Click Here

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