Federal Bank net jumps 41%; NRI deposits up

The net profit of Federal Bank spurted by 41 per cent to Rs 202 crore for the quarter ending December 31. The bank delivered substantial topline and bottomline growth despite a challenging macro environment, both in the domestic and global market, a press release issued here said.

The bank, which had been working on its transformation to a truly pan-India status while adopting contemporary management techniques, has reported excellent numbers which not only reflect rapid growth but also asset quality.

The total business grew by 22.7 per cent to touch Rs 79,948 crore. Total deposits increased 26.6 per cent to Rs 46,742 crore. While retail deposits expanded 27.2 per cent to Rs 38,678 crore, NRI deposits grew faster at 35.4 per cent to Rs 10,546 crore.

Deposit growth

The fall in the rupee value and spurt in interest rates for NRI deposits seem to have helped accelerate the volume of NRI deposits. The low-cost CASA deposits grew by 21.9 per cent to Rs 13,186 crore.

CASA growth improved the net interest margin and enabled the bank to report a better bottomline. The net interest margin for the quarter was at 3.94 per cent. Net advances grew by 17.5 per cent to Rs 33,206 crore, boosted by increased lending to SME, corporate and retail segments. Retail advances form 28.7 per cent of all advances while SME lending formed 28.7 per cent.

The bank said it had contained gross NPAs to 3.97 per cent while net NPAs ruled at 0.74 per cent.

cj@thehindu.co.in