Federal Bank on Thursday reported a marginal rise in March quarter net profit at Rs 906 crore, impacted by pension provisions. In the year-ago period, profit was Rs 903 crore. In the full fiscal year FY24, profit increased to Rs 3,720 crore from the year-ago’s Rs 3,010 crore.
The private sector lender said it is yet to send the names of potential candidates to succeed MD&CEO Shyam Srinivasan. His term ends in September this year.
In the March quarter, its core net interest income rose 15 per cent to Rs 2,195 crore on the back of a 20 per cent credit growth and narrowing of net interest margin to 3.21 per cent from 3.36 per cent in the year-ago period.
Speaking to reporters, Srinivasan said the bank would want the risk adjusted NIM calculated after including the credit costs to sustain between 3.20-3.25 per cent going forward.
It is targeting a loan growth of 18 per cent in FY25, and hopes that the 18 per cent growth in deposits in FY24 will keep pace.
In the March quarter, it was hit by a Rs 162 crore provision towards pension which hurt the overall net profit, Srinivasan said.
On the asset quality front, the fresh slippages came down to Rs 352 crore from the quarter-ago’s Rs 479 crore and Rs 436 crore in the year-ago period, resulting in improvement in gross non performing assets ratio to 2.13 per cent as on March 31, 2024. Its overall capital adequacy stood at 16.13 per cent as on March 31, 2024.
Amid speculation over the next candidate to succeed Srinivasan, the incumbent MD and CEO said there is a board search panel on the job and that it will be submitting a list of candidates in the next few weeks.
