Fedfina aims to scale up business to 15,000 cr in five years: CEO
Fedbank Financial Services (Fedfina), a subsidiary of Federal Bank, has set out a comprehensive expansion plan to scale up its balance sheet size by20-02-2019
20-02-2019
Federal Bank Ltd - 500469 - Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation
Intimation of schedule of Analyst/Investor Meets/Calls pursuant to SEBI (Listing Obligations and Disclosure Requirements) Regulations, 201519-02-2019
'You cannot go wrong with consumer names in India'
We have been bullish on some of the private sector smaller banks like Federal Bank, South Indian Bank.19-02-2019
Federal Bank Ltd - 500469 - Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation
Intimation of schedule of Analyst/Investor Meets/15-02-2019
FEDERAL BANK LTD. - 500469 - Loss of Share Certificate / Issue of Duplicate Share Certificate
Federal Bank Ltd has informed BSE regarding Loss of Share Certificate / Issue of Duplicate Share Certificate.11-02-2019
Federal Bank Ltd - 500469 - Loss of Share Certificate / Issue of Duplicate Share Certificate
Federal Bank Ltd has informed BSE regarding Loss of Share Certificate / Issue of Duplicate Share Certificate.06-02-2019
Federal Bank Ltd - 500469 - Loss of Share Certificate / Issue of Duplicate Share Certificate
Federal Bank Ltd has informed BSE regarding Loss of Share Certificate / Issue of Duplicate Share Certificate.31-01-2019
Federal Bank Ltd - 500469 - Payment of Interest
Federal Bank Ltd has informed BSE regarding "Payment of Interest".28-01-2019
In a sector full of upheaval, Federal Bank has become one of the front-benchers
By Suhani Adilabadkar The Nifty Bank index says it all: 2018 was a memorable ride for Indian Private Sector Banks. The year began with ICICI Bank’s lunar eclipse and ended with Kotak Mahindra Bank and RBI duking it out in the Bombay High Court. The banking industry saw jitters around Axis Bank, and IndusInd got a rap on its knuckles. There was Bandhan Bank’s promoter stake saga, and Yes Bank's ownership and disclosure mess. Though HDFC Bank stood more or less like a rock throughout, private sector banks had quite a journey last year. But there are few more noteworthy to count, inlcluding RBL Bank, DCB and Federal Bank. The oldest of these, Federal Bank had its share of holy dips in May 2018 with its biggest intraday fall. Shaken but not stirred, Federal Bank is back on the investor radar with its stellar December quarter performance. Quick Takes: Federal Bank (which is in 12 stock screeners) reported its highest ever Net Interest Income (NII) and PAT at Rs. 1077 cr and Rs.334 cr growing 13% and 28% YoY respectively. Superstar investor Rakesh Jhunjhunwala has increased his portfolio stake in Federal Bank. Management has guided for NIM at 3.20% by the end of FY19. Federal Bank has forayed into investment banking through strategic acquisition of 20% stake in Equirus Capital, a boutique investment bank. Fully-owned subsidiary Fedfina (NBFC) is also rolling on the growth path with 26% investment by True North, domestic private equity firm. Digital channels account for 74% of bank’s total transactions which will favourably translate into lower cost to income ratio. Back On The Growth Radar Federal Bank reported its highest ever Net Interest Income (NII) and PAT at Rs. 1077 cr and Rs. 334 cr growing 13% and 28% YoY respectively. Though NII reported strong double-digit performance throughout FY19, PAT recovered from its stagnant September performance, exhibiting robust sequential growth of 25% in December quarter FY19. Key performance ratio, Net Interest Margin (NIM) has been improving gradually over the past three quarters and stands at 3.17% in Q3 FY19. The CEO and MD, Federal Bank, Mr Shyam Srinivasan noted, “NIMs, have been growing between 3 and 5 basis points every quarter. I am still hopeful that by end of the 4th quarter, we will be on guidance of 3.20%”. Operating Profit was the only parameter in the slower lane, moving at 9% YoY at Rs. 362 cr impacted by pension cost of about Rs.35- 40 cr during December quarter. Continuing with strong growth momentum, Retail book inclusive of agri constituting 38% of loan book grew 23% whereas Corporate was higher at 31% YoY forming more than two fifth of total advances. In totality, advances grew 25% and Deposits moved at 23% YoY. A major positive thrust was also received from Other income constituting 10% of total income rising 51% YoY at Rs. 346 cr mainly driven by income from loan processing, para banking products and forex transactions. With respect to asset quality, though GNPA and Net NPA ratio are still elevated at 3.14% and 1.72% respectively, fresh slippages at Rs. 426 cr exhibited a positive outline with mild increase of 4% YoY but a strong noteworthy quarterly decline of 10% in Q3 FY19. Provisions too followed similar downward momentum declining QoQ by 13% and rising 24% on yearly basis. Recovery On A Steady Path On May 10 th 2018, Federal Bank declined 12% in a single day due to weak fourth quarter results FY18 as Net Profit fell 44% YoY. Accelerated NPA recognition on account of revised framework for resolution of stressed assets prescribed by RBI was a major setback for the bank, which had been reporting sustained growth momentum throughout FY17-18. The stock dipped and also investor sentiment, partially fuelled by ‘Big Bull’ Rakesh Jhunjhunwala paring his portfolio stake. This Kerala-based Bank has however been on recovery mode even after the Kerala Floods impact unfolded in September quarter last year. Though NII was already growing in strong double digits, PAT did not stroll into negative territory growing just 1% both yearly and on sequential basis in Q2 FY19. Coming to current growth momentum, things seem to be holding steady with all growth parameters pointing north. Strong loan book growth is fuelled by robust deposit growth with absolute CASA rising 24% YoY at a ratio of 33.35%. Retail deposits with lower interest rate risk form 94% of Deposits growing 20% YoY whereas current deposits witnessed healthy jump of 40% YoY. And this robust momentum has been maintained without any branch additions over the past 3-4 years indicating superior productivity and branch led distribution heavy network for deposit mobilization with favourable opex impact. But the management intends to increase its branches in the next two years as, Mr Shyam Srinivasan clarified, “In 20-21, 21-22 we will put in 40-50 branches each year, but they will be more strategic and different in nature, not the same large brick and mortar structure, more of sales-oriented setup”. This lightweight branch strategy would not only have positive opex impact but also likely propel both deposit and lending growth rates. During the December quarter, Federal Bank has established its full-fledged operation service company, FedServ with centres at Cochin and Vizag which will take on entire work of distribution on operations in order to enhance its productivity and improving returns on investments. The bank is also moving on a digital path with 99% of its new savings accounts being opened through digital channels and further mobile transactions amount to Rs. 3000 cr every month. At present digital channels account for about 74% of bank’s total transactions which will favourably translate into lower cost to income ratio. The management expects to improve this parameter by 100 basis points which currently stands at 50 in Q3 FY19. Long Term Strategic Investments Federal Bank’s unlisted fully-owned subsidiary Fedfina (NBFC) is on the growth path with a 26% investment by True North, domestic private equity firm. This strategic equity sale would help augment Fedfina’s asset portfolio of more than Rs.1400 cr, boost its branch network and capital base. With respect to its profitability, Bank’s MD, Shyam Srinivasan is extremely positive and added that, “This year will see roughly 25% to 30% profit growth and they are building to scale up materially, so the real value of all the efforts would be seen in FY 20”. The Parent Bank itself has widened its horizons and sharpened ambitions by foraying into investment banking through strategic acquisition of 20% stake in Equirus Capital, boutique investment bank. Diversifying beyond traditional products, Federal Bank intends to extend its product offerings to structured finance, advisory services, equity and debt market products to unlock untapped potential of its Non-Resident clientele. This would, the bank hopes, considerably expand future revenue streams and long term growth. It won't be just Jhunjhunwala who will be watching closely.28-01-2019
FEDERAL BANK LTD. - 500469 - Appointment Of Part Time Chairman Of The Bank
Appointment of Part Time Chairman of the Bank26-01-2019