(20 second reading) Private sector lender Federal Bank reported its March quarter net profit at Rs 906 crore due to higher operating expenses.
During the quarter, the bank’s total expense rose 36% YoY to Rs 5,622 crore. The higher expenses were on account of higher wage related provisions. The bank has been every year sequentially increasing its spends (on IT systems) as a share of our overall expenses.
The Board of Directors of the bank have proposed a dividend of Rs 1.20 per equity share
Overall advances rose 20% YoY. Retail loans constituted 56% of overall advances and grew 25% YoY
The bank’s asset quality improved, with GNPA, NNPA at 2.13% and 0.60% in Q4