Other income falls from the high base | |
Asset Quality
In the absolute terms, Gross NPA of the bank has increased by 26% on y-o-y basis and was flat on sequential basis to Rs 790.72 crore in the quarter ended December 09. However, Net NPA of the bank has more than doubled on both y-o-y and q-o-q basis (up by 108% and 106% respectively) and reported at Rs 146.85 crore in the quarter ended December 09.
The % of GNPA to Gross Advances of the bank has stood at 2.97% in Q3FY10 as against 2.83% in Q3FY09 and 2.99% in Q2FY10. The % of Net NPA to Net Advances has increased to 0.56% in Q3FY10 as against 0.54% in Q2FY10 and 0.33% in Q3FY09.
The total provisions held against non-performing advances, expressed as a percentage of gross NPAs amounted to 80.69% at the end of the quarter ended December 09.
Business Highlights:
- Total business of the Bank reached Rs 60617 crore, showing an increase of 24% from the corresponding period of the previous fiscal.
- Net Advances went up by 21% to Rs 26030 crore as on 31st December 2009 from Rs 21553 crore as on 31st December 2008. The growth was driven by Corporate, Retail and SME advances.
- The retail advances of the Bank grew by 19% on y-o-y basis and reached Rs 8220 crore forming 30 % of the total advances.
- The advances to priority sector reached Rs 10647 crore as on 31st December 2009 from Rs 9514 crore as on 31st December 2008 thereby recording a y-o-y growth of 12%. Lending to Agriculture sector was at Rs 2638 crore.
- The Net Interest Margin of the Bank for quarter ended December 2009 is at 4.05 % as against 3.70 % in September 2009. Net Interest Margin for nine months (NIM) at 3.69 %
- Investments increased by 29% from Rs 9713.46 crore to Rs 12521.48 crore for the quarter ended December 09.
- Book Value per share of the bank as on quarter ended December 09 stood at Rs 273.26.
- Return on Average Assets (annualized) of the bank as on quarter ended December 09 stood at 1.17 %
- The Net Worth of the Bank increased to Rs 4674 crore as on 31.12.2009 from Rs 4263 crore as on 31.12.2008.
- The Capital Adequacy (CRAR) of the Bank, computed as per Basel 1 guidelines, stands at 17.76 %, against the regulatory minimum of 9 %. The CRAR computed as per Basel 2 norms is 18.50 %. The Tier-1 (core CRAR) capital works out to 15.69 %. (17.05 % under Basel 2)
- During the third quarter of the current fiscal, assets from 19 accounts worth Rs 6.51 crore was restructured.
- The Bank opened 26 branches and 37 ATMs during the quarter. The total number of branches and ATMs had increased to 669 and 707 respectively, by the end of the third quarter of the current fiscal.
- The business per employee and profit per employee as on December 31, 2009 were at Rs 794 Lakh and Rs. 6.10 Lakh respectively as compared to Rs. 669 Lakh and Rs. 7.11 Lakh respectively as on December 31, 2008.
Quarterly Performance
For the quarter ended December 09, Federal Bank has reported 46% dip in the Net Profit to Rs 110.25 crore in the back of 1% dip in the Net Interest Income to Rs 381.11 crore. The Interest earned rose by 8% to Rs 944.64 crore while interest expended grew faster by 15% to Rs 563.53 crore in the quarter under review. The bank had reported Interest Margin of 4.05% for the quarter ended December 09. The other income of the bank has fell by 29% to Rs 116.48 crore on the back of dip in the treasury income owing to hardening of yields. Thus the Net Total income of the bank was down by 9% to Rs 497.59 crore.
The operating expenses of the bank has marginally increased by 1% to Rs 166.05 crore constituting employee cost at Rs 87.43 crore (dip by 15% on y-o-y basis) and Other Operating Income of Rs 78.62 crore up by 27% in the quarter ended December 09. However, the cost to income ratio of the bank has shot up by 330 bps to 33.4% and pulled down Operating profits by 14% to Rs 331.54 crore. Further Provisions and contingencies of the bank has more than doubled (up by 111%) to Rs 105.31 crore pulling PBT down by 32% to Rs 226.23 crore. The effective tax rate of the bank has shooted up by 1220 bps to 51.3% and reported Net Profit down by 46% to Rs 110.25 crore.
Performance for Nine months period
For the nine months ended December 09, Federal bank has reported 10% dip in the Net profit to Rs 347.70 crore on the back of 1% increase in the NII to Rs 1001.14 crore. The other income of the bank has marginally rose by 10% to Rs 400.32 crore and translated to 3% growth in the Net Total Income at Rs 1401.46 crore in the quarter under review. However, 17% increase in the operating expenses to Rs 488.40 crore has pulled down Operating Profit by 3% to Rs 913.06 crore. Despite 19% dip in the provisions and contingencies to Rs 307.40 crore, whooping increase in the effective tax rate by 1140 bps to 42.6% has pave Net Profit at Rs 347.70 crore, down by 10% on y-o-y basis.
Other Information
The Scrip is hovering at Rs 249.30 on BSE.
Federal Bank: Financial Result
Particulars0912 (3) 0812 (03) Var % 0912 (9) 0812 (9) Var % 0903(12) 0803(12) Var. (%) Interest Earned 944.64 876.42 8 2720.09 2449.64 11 3315.38 2515.44 32 Interest Expended 563.53 491.83 15 1718.95 1455.08 18 1999.92 1647.43 21 Net Interest Income 381.11 384.59 -1 1001.14 994.56 1 1315.46 868.01 52 Other Income 116.48 164.81 -29 400.32 365.23 10 515.77 394.72 31 Net Total Income 497.59 549.40 -9 1401.46 1359.79 3 1831.23 1262.73 45 Operating Expenses 166.05 164.99 1 488.40 418.93 17 571.45 468.61 22 Operating Profits 331.54 384.41 -14 913.06 940.86 -3 1259.78 794.12 59 Provisions & Contingencies 105.31 49.97 111 307.4 379.24 -19 466.77 293.97 59 Profit Before Tax 226.23 334.44 -32 605.66 561.62 8 793.01 500.15 59 Provision for tax 115.98 130.55 -11 257.96 175.3 47 292.52 132.10 121 Net Profit 110.25 203.89 -46 347.70 386.32 -10 500.49 368.05 36 EPS*(Rs) 25.8 47.7 27.1 30.1 29.3 21.5
* Annualized on current equity of Rs 171.03 crore. Face Value: Rs 10
Figures in Rs crore
Source: Capitaline Corporate Database
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