Federal Bank on Tuesday posted a 24.94% increase in net profit to R277.29 crore for the quarter ended March 31, 2014. Net profit was boosted by a 30.29% y-o-y rise in net interest income (NII) at R625.08 crore.
The bank continued to focus on asset quality and gross NPAs came down to R1,087 crore from R1,201 crore on a sequential basis, and net NPAs reduced to R322 crore from R356 crore. In terms of percentage to gross advances, gross NPAs came down by 37 bps to 2.46% and net NPAs decreased by 12 bps to 0.74%. As a result, provisions remained flat at R142.75 crore and grew 0.15% from Q4 last year.
Improved NII contributed to better margins and net interest margins (NIMs) improved by 35 bps to 3.59% sequentially.
However, other income was down 9.37% y-o-y to R178.41 crore. Net advances as on March 31 stood at R43,436.10 crore, a fall of 1.5% y-o-y.
The bank continued to see growth in its retail and small and medium enterprises (SME) portfolios. Advances to SMEs increased 35.75% y-o-y to R11,021.43 crore and retail loans rose 5.97% y-o-y to R14,123.63 crore.
Total deposits grew 3.67%
y-o-y to R59,731.28 crore. The bank’s Casa deposits increased 18.57% to R18,401 crore in FY14. Casa and foreign currency non-resident deposits, as a share of total deposits, increased to 33.82% from 33.47% sequentially. Capital adequacy ratio stood at 15.14% at the end of the quarter.