Business Standard

Federal Bank Q4 results: Profit flat at Rs 906 cr due to pension expense

Bank in advance stages of submitting new CEO names to RBI

Q4 earnings, Q4, Q4 results

Imaging: Ajay Mohanty

BS Reporter Mumbai

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Private sector lender Federal Bank on Thursday reported flat growth in its net profit for the quarter ended March 31, 2024 due to a one-time hit on account of pension provision.

The lender reported a net profit of Rs 906.30 crore for the fourth quarter of just concluded Financial Year 2024, a period when the lender had to make pension provision of Rs 162 crore.

The net profit in the same period of the previous year was Rs 902.61 crore.


The net interest income of the lender grew by 14.97% to Rs 2195.11 crore aided by healthy growth in advances.

“The quarter that went by was strong. We are entering FY25 with reasonably strong momentum. We believe our market share gains are sustainable both on assets and deposits,” said Shyam Srinivasan, MD & CEO of Federal Bank during the post earnings conference call.

Net advances increased from Rs 1.74 trillion as on 31st March 2023 to Rs 2.09 trillion.

Retail advances grew by 20.07 per cent while business banking advances grew by 21.13 per cent to reach Rs 17072.58 crore.

Corporate advances registered a growth of 11.97 per cent to reach Rs 73,596 crore.

Deposit growth of the bank was 18.35 per cent to Rs 2.52 trillion.

Gross NPA as percentage of gross advances was 2.13 per cent, declines from 2.36 per cent a year ago while net NPA ratio was 0.6 per cent as compared 0.69 per cent.

On the appointment of the new MD & CEO, Srinivasan said the search committee is in the advanced stages to send names to the Reserve Bank of India for approval.

There are two internal candidates in the list.

“There is a board-established search panel which is doing its job and doing it very well. They have a slate of candidates to choose from… it could be from internal... it could be external,” Srinivasan said.

“They are in the advanced stages of submitting to the regulator and then the regulatory process kicks in,” he added.

In a surprise move in February this year, the regulator declined to extend Srinivasan’s tenure for one more year which expires in September.

Srinivasan was appointed as the CEO in 2010, and according to norms he could have continued for one year.


 

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First Published: May 02 2024 | 6:50 PM IST

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