Business Today
Loading...

Federal Bank FY20 profit rises 24% to Rs 1,543 crore; 35% of borrowers avail moratorium

For the fourth quarter ended March 31, 2020, Federal Bank reported a net profit of Rs 301.23 crore compared to Rs 381.51 crore in the year-ago period, registering a year-on-year decline of 21.04 per cent

Chitranjan Kumar New Delhi Last Updated: May 28, 2020 | 21:01 IST
Federal Bank FY20 profit rises 24% to Rs 1,543 crore; 35% of borrowers avail moratorium
Federal Bank said that 35 per cent of its borrowers by value have availed the three month moratorium as on May 25

Private lender Federal Bank has closed financial year 2019-20 with 24 per cent growth in its net profit at Rs 1,542.78 compared to Rs 1,243.89 in the previous fiscal. The bank's total income jumped 42.96 per cent to Rs 1,931.41 crore from Rs 1,351.02 crore in FY19.

For the fourth quarter ended March 31, 2020, Federal Bank reported a net profit of Rs 301.23 crore compared to Rs 381.51 crore in the year-ago period, registering a year-on-year decline of 21.04 per cent. Profit was impacted by higher provisioning against the COVID-19 impact.

Commenting on the results and financial performance, Shyam Srinivasan, Managing Director & CEO, Federal Bank said that 35 per cent of its borrowers by value have availed the three month moratorium as on May 25. Out of total loan book size of Rs 1,24,153 crore, moratorium of loan worth Rs 43,067 crore was extended on May 25, in line with the Reserve Bank of India's (RBI) recent announcement.

Also Read: Coronavirus: SBI extends term loan EMI moratorium by 3 months, simplifies EMI deferment process

Federal Bank's provisions during the March quarter jumped over three-fold to Rs 567.50 crore as against Rs 177.76 crore in the year-ago quarter.

"To face any unfavorable situation that may arise due to the pandemic, we have increased the provisions substantially and strengthened the balance sheet. On the business front, the Bank has achieved robust growth in the retail segment with housing loans and gold loans growing handsomely," Srinivasan said.

Also Read: Why Axis Bank share price has gained 21% in three days

Meanwhile, bank's net interest income, or the difference between interest earned on loans and that paid on deposits, rose 10.9 per cent to Rs 1,216.01 crore from Rs 1,096.53 crore in the corresponding period last year. Other income, which includes core fee income, jumped 72.72 per cent to Rs 711.11 crore from Rs 411.72 crore in March quarter of 2019.

On the asset front, gross non-performing assets (NPAs), as a percentage of total advances, dropped to 2.84 per cent in Q4 FY20 compared with 2.99 per cent in Q3FY20 and 2.92 per cent in Q4FY19. The net NPA ratio stood at 1.31 per cent against 1.63 per cent in December quarter and 1.48 per cent in the year-ago quarter.

Youtube
  • Print

  • COMMENT
BT-Story-Page-B.gif
A    A   A
close