Federal Bank Q4 NII jumps nearly 15% on strong asset quality, announces dividend

Federal Bank Share Price: The private lender has declared a final dividend of Rs 1.20 per equity share while announcing its earnings for Q4 FY24.

Written by Sumana Sarkar

May 2, 2024 14:50 IST

Federal Bank Share Price: The bank has recorded its high-ever net interest income in Q4. (Image: Pexels)

Key banking play, Federal Bank has reported the highest-ever NII in Q4FY24 at Rs 2195.11 cr, up 14.97% YoY from Rs 1909.29 in Q4FY23. The Bank also reported a net profit of Rs 906.30 crore in Q4.

Q4 Margins healthy

The strong NII also ensured healthy margins for Federal Bank. The total income of the Bank for the quarter grew by 23.42% to reach Rs.6732.23 crore. Earnings per share (EPS) annualized is Rs 14.97. Key Ratios ROA & ROE of the Bank for the quarter stood at 1.22% and 12.75% respectively.

Asset quality strong

Federal Bank stock hit a 52-week high intra-day on the back of strong asset quality. The Gross NPA of the Bank as at the end of Q4 FY24 stood at Rs 4528.87 crore, which as a percentage to Gross Advances stood at 2.13%. The Net NPA stood at Rs. 1255.33 crore in Q4 and the Net NPA as a percentage of Net Advances as of March 31 is 0.60%. The PCR or Provision Coverage Ratio excluding Technical Write Off was 71.08%. The capital Adequacy Ratio (CAR) of the Bank, computed as per Basel III guidelines stood at 16.13% at the end of the quarter

Management comments

Speaking about the Bank’s strong Q4 performance, Shyam Srinivasan, Managing Director & CEO of the Bank said, “With a 10% increase in our footprint, our branches now dot the map, across the length and breadth of India. The physical distribution is buttressed with significant investments in Technology and Digital capabilities, helping us serve clients in over 15000 pin codes. We look forward to the year ahead with confidence.”