Federal Bank Q4 profit remains flat, announces dividend of ₹1.20 per share

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Federal Bank on Thursday (May 2) reported a 0.4% rise in net profit to ₹906.3 crore for the fourth quarter of FY24. In the same period last year, the bank had posted a net profit of ₹902.6 crore. This performance comes slightly below CNBC-TV18’s poll estimate of ₹931.6 crore.

The bank witnessed a 15% rise in its Net Interest Income (NII), which stood at ₹2,195.1 crore in Q4 compared to ₹1,909.3 crore in the same period of the previous financial year.

In terms of asset quality, the bank exhibited improvement as its Gross Non-Performing Assets (NPA) ratio decreased to 2.13% from 2.29% in the previous quarter.

Similarly, the Net NPA ratio also saw a decline to 0.6% compared to 0.64% in the previous quarter.

Moreover, the Federal Bank reported a provisions write-back of ₹94.6 crore, an increase from the provision of ₹91.2 crore in the previous quarter.

Slippages decreased to ₹371 crore from ₹496 crore sequentially.

Additionally, the bank’s Net Interest Margin (NIM) stood at 3.21%, showing a slight improvement from the previous quarter’s 3.19%, though it remained lower compared to the same period last year when it was 3.36%.

In addition to the financial results, the Board of Federal Bank has recommended the payment of a final dividend for the financial year 2023-24.

The proposed dividend stands at ₹1.20 per equity share of face value ₹2 each, amounting to 60% of the face value.

However, the dividend payment is subject to the approval of the shareholders at the forthcoming Annual General Meeting of the Bank.

Earlier in the day, Federal Bank shares hit a 52-week high, with the stock rising by nearly 5% to reach ₹170.25 apiece on the BSE.

It has been reported that Kotak Mahindra Bank’s KVS Manian, who resigned on Tuesday (April 30), may be moving to Federal Bank.

CNBC-TV18 had earlier reported, citing sources, that Manian is among the short-listed candidates for the position of the new Managing Director & CEO.

However, there has been no official announcement regarding Manian’s potential appointment or any other leadership changes within the Federal Bank.

Shyam Srinivasan, who has been serving as the CEO of Federal Bank, is scheduled to complete his term in September 2024.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow