Federal bank PAT Up By 25%

Federal Bank has posted a good set of numbers for the March quarter of FY14. The result was announced after the market hours yesterday (April 28, 2014) and hence its impact is visible in today’s trade. The scrip is trading at a price of Rs 94.6, gaining more than 2% from its previous close.

The interest earned for the company was Rs 1838.71 crore for Q4FY14 as against Rs 1583.46 crore during Q4FY13, reporting a jump of more than 16% on yearly basis. Whereas the interest expended for the quarter was Rs 1213.63 crore as against Rs 1103.7 crore during the same quarter of previous year. The net interest income (NII) has increased by more than 30% YoY to Rs 625.08 crore during this quarter.

As far as asset quality is concerned, the company has observed some sign of improvement. The Gross NPAs as a percentage to gross advances has reduced to 2.46% as compared to 2.86% during the previous quarter of FY14. Whereas the net NPAs of the company has came down to 0.74% during the Q4FY14 as against 0.86% for Q3FY14, reducing by 12 basis points.

During this quarter the company has posted a profit after tax (PAT) of Rs 277.29 crore reporting a jump of around 25% as compared to the same quarter of previous year. The lesser provisions during this quarter has also helped the company to post better profit. The company has made provisions of Rs 55 crore during the quarter ended March 2014, reporting a fall of 41 per cent on yearly basis. If we look at the provision coverage ratio (PCR), the PCR including written off assets has increased to 84.12% from 83.29% on sequential basis. 

The company has recommended a dividend of Rs 2 per share. While on the future outlook, the bank has continued to expand its footprints and added 32 branches and 47 ATMs during this quarter taking the total branches to 1174 and the ATMs to 1359 as of March 31, 2014. The scrip is trading at a price to book value (P/BV) of 1.29x.