Private sector lender Federal Bank today reported a jump of 32.31 per cent in net profit to Rs 776.79 crore for 2011-12 and said it will focus more on retail credit in the current fiscal.
The Kochi-based lender had posted a net profit of Rs 587.08 crore in the previous fiscal.
The bank said the overall asset quality has brought down its non-performing assets.
During 2011-12,the total income of the bank grew by 33.31 per cent to Rs 6,091 crore from Rs 4,568.84 crore,while its net interest margin (NIM) stood at 3.79 per cent.
Total deposits rose 13.77 per cent from Rs 43,014.78 crore to Rs 48,937.12 crore,while advances increased 18.16 per cent from Rs 31,953.23 crore to Rs 37,755.99 crore.
For the full year,its net NPA stood at Rs 199 crore. The bank closed the year with a capital adequacy ratio of 16.64 per cent.
“An improvement in the overall asset quality brought down our stressed assets and helped us report healthy numbers. The overall growth was also aided by a 27 per cent rise in our footprint,” the bank’s Managing Director and Chief Executive Shyam Srinivasan told reporters in a conference call.
“We have restructured around Rs 920 crore assets during the quarter. The major chunk of around Rs 800 crore came from the aviation industry and state electricity boards. We do not have any major restructuring case in the pipeline. Asset quality will improve in FY13,” he added.
For the fourth quarter ended March,2012,it posted a healthy 38.4 per cent rise in net profit at Rs 237.6 crore,up from Rs 171.72 crore in the year-ago period.
Net interest income rose during the quarter nearly rose by 10 per cent to Rs 491 crore,while provisions,including taxes,came down by 24.46 per cent to Rs 134.83 crore on the back of improved asset quality.
Accordingly,the gross non-performing asset ratio of the country’s fourth largest private sector lender by branch network fell to 3.35 per cent from 3.49 per cent,while net bad loan,or NPA ratio,came down to 0.53 per cent from 0.6 per cent.
“In FY13,we are focusing more on retail credit. Both home and gold loans should grow 25-28 per cent this fiscal. We are not violating any regulatory norms on gold loans,which currently stands at around Rs 3,600 crore,” Srinivasan said,adding the bank’s home loan book stood at Rs 5,000 crore by the end of the fiscal.
During the year,its deposits grew at 14 per cent to Rs 49,000 crore,taking its total business to Rs 86,693.11 crore,showing an increase of 15.64 per cent in 2010-11.
Executive Director P C John said the lender wrote back Rs 41 crore due to a decrease in NPAs. This led to reduction in NPA provisions.
John further said during the quarter,the bank had fresh slippages of Rs 269 crore,while it recovered or upgraded Rs 332 crore,including recovery of Rs 82 crore from previously written-off assets.
Interest income grew 43.45 per cent to Rs 1,479.02 crore from Rs 1,100.02,while other income rose 13.71 per cent to Rs 160.55,up from Rs 141.19 crore,propping up total income by 32.09 per cent to Rs 1,639.57 crore from Rs 1,241.21 crore. Net interest income rose 9.73 per cent to Rs 491.21 crore from Rs 447.64 crore a year ago.
The bank,known for its strong NRI customer base,saw its NRE deposits jumping 35 per cent to Rs 11,184 crore. The bank has proposed a dividend of Rs 9 per share or 90 per cent.
The bank has 950 branches and 1,016 ATMs across the country.