homefinance NewsFederal Bank's credit quality at all time best, see unsecured book an opportunity to grow: Shyam Srinivasan
Federal Bank's credit quality at all-time best, see unsecured book an opportunity to grow: Shyam Srinivasan
The lender registered net profit at Rs 902.6 crore for the January-March period ahead of Street estimates. Analysts in a CNBC-TV18 poll had estimated the lender's quarterly net profit at Rs 823.9 crore.
Shyam Srinivasan, Chief Executive Officer (CEO) at Federal Bank on Monday said that deposit growth of the bank was led by the retail segment in the fourth quarter of FY24. He said that the credit quality is at an all-time best and credit cost is currently lowest amongst all banks. Srinivasan was speaking exclusively to CNBC-TV18 after the lender reported a strong profit growth on Friday.
The lender registered net profit at Rs 902.6 crore for the January-March period ahead of Street estimates. Analysts in a CNBC-TV18 poll had estimated the lender's quarterly net profit at Rs 823.9 crore.
The private sector bank posted a consolidated total revenue of Rs 5,780.78 crore. The provisions stood at Rs 116.6 crore versus Rs 198.7 crore quarter-on-quarter (QoQ) and versus Rs 75.2 crore year-on-year (YoY). The gross net performing asset (NPA) came in at Rs 4,183.8 crore, versus Rs 4,147.9 crore in the third quarter of FY23. The net NPA stood at Rs 1,205 crore. In percentage terms, the gross NPA was reported at 2.36 percent. The net NPA in percentage terms came in at 0.69 percent.
Srinivasan said that all joint ventures or subsidiaries of the bank have reported similar return on equity (RoEs) to bank and is at an all-time high. On margins, he added that some kind of contraction was expected.
Going further, Srinivasan is expecting risk weight to loan ratio to decrease in coming quarters. He said that he has a target loan growth of 18-20 percent for FY24. He is further expecting corporate growth in FY24 to be similar to FY23 levels, aided by commercial segment.
He said he is cautious on credit quality and the unsecured book. He can see unsecured book as an opportunity to grow.
In the calendar year 2023 or in financial year 2024, Srinivasan said that the bank can raise funds.
(Edited by : Anshul)
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