Mr. Shyam Srinivasan – MD & CEO
Mr. Ashutosh Khajuria – executive director
Ms. Shalini Warrier – executive director
Mr. Harsh Dugar – group president & country head – wholesale banking
Mr. Venkatraman Venkateswaran – group president & CFO
Mr. Babu K A – senior vice president & head – loan collection & recovery
Mr. Anand Chugh – head – investor relations
Q2 FY-22 Financial performance:
- The quarterly net profit which stood at Rs. 460 crore and grew by 50% on a YoY basis.
- NII that grew by 7.2% on a YoY basis despite ~5% growth in advances.
- NIM at 3.20% in Q2 FY22.
- The bank strengthened its provision coverage from 64.65% to 65.43%.
- net NPA came down to 1.12% in Q2 FY22.
- Q2 FY22 ROA at 0.92%, increase of 27 bps YoY and ROE at 10.73%, increase of 264 bps YoY.
- Operating Profit at Rs 865 Cr for Q2 FY22.
- CASA grew by 18% YoY, CASA Ratio for Q2FY22 was at 36.16% at an all time high.
- Retail Deposits at 94% of Total Deposits.
- Market share in personal inward remittances received in the Financial Year increased to 20.54% in Q2 FY22.
- Asset Quality: Net NPA at 1.12%, amongst the best in the industry, PCR at 65.43% in Q2 FY22.
- Balance Sheet and Capital: Balance Sheet size at Rs 2.06 L Cr in Q2 FY22. CRAR at 14.97% in Q2 FY22.
- Steady Growth in Market Share: Market Share in Advances at 1.21%, Market Share in Deposits at 1.07%
- Credit Growth in Chosen Areas: Total Advances grew by 10% YoY, Retail Advances grew by 12% YoY, Agri grew by 20% YoY, Business Banking grew by 11% YoY & Commercial Banking grew by 12% YoY.
- 87.5.% of the total transactions were digital transactions.
- 10,800 cr. in terms if monthly mobile banking volume.
- 149% YoY growth in UPI transactions.
- 81% new accounts opened digitally.
- 300+ API’s available in open banking
- No. 1 partner bank of Bharat Pe, Federal bank processes highest number of transactions for Bharat Pe, this was achieved in 8 months.
- 15 lakhs+ transactions are processed every day.
- There is a YoY growth of 34% in active digital user.
- Digital share stands at 87.50% for the month of Sept 21 and 86% overall.
Credit portfolio distribution:
- 54% of the total loan amount is of retail loans, and the remaining 46% of the total loan amount is of wholesale loans.
- gold loan is roughly about 11.85% of the total loan book. 70% YoY growth, part of it certainly was contributed by the higher gold price per gram.
- Yield on advances in Q2 of FY22 is around 8.11%.
- Launched Debit-Card-EMI/BNPL option for Health insurance with
- Niva Bupa
- Tied-up with Cred Avenue for technology solution to manage
- Direct assignment/securitization portfolio
- Disbursals through Fintech enabled Gold and Micro lending
- platforms crossed Rs.3800 Cr.
- FedMi – BC microlending platform went live in Q2 and 3 BCs
- onboarded for sourcing MFI business
- Onboarded 62 new clients in CIB and 79 new clients in CoB, across business groups, geographies and
- sectors during the quarter.
- Digital channel adoption and CASA enabling products (Trade and Transaction products) helped Avg
- CASA grow by 41% YoY in CIB and 21% YoY in CoB
- Average Ticket Size of Wholesale Loan Book (CIB+CoB) : 23 Cr
- Average Ticket Size of CIB & CoB Loans is 56 Cr & 7 Cr Respectively
- Federal Operations & Services Limited (FedServ) - 100.00% stake
- Fedbank Financial Services Limited - 74.00% stake
- Ageas Federal Life Insurance Company Limited - 26.00% stake
- Equirus Capital Private Ltd - 19.89% stake
FedBank Financial Services Ltd. (FEDFINA):
- Crossed Balance Sheet size of Rs 5,100 Cr in Q2FY21.
- 463 branches as at the end of Sept 21 quarter.
- Fixed deposits (short term) got A1+ rating by CRISIL.
- Certificate of deposits got A1+ rating by CRISIL.
- Tier 2 (Capital) Bonds got AA rating by both India Ratings & Research Pvt Ltd, and CARE
Originally Published On: https://blog.investyadnya.in/federal-bank-q2fy22-conference-call-highlights/