The Federal Bank (FEDERALBNK) Q4 00/01 earnings summary

Executive summary

• FY 2000-01 delivered record net profit of Rs.61.04 crore and operating profit of Rs.187.04 crore, with balance-sheet growth and higher shareholder returns.

• Business focused on core deposits, retail lending, impaired-asset recovery, risk controls and technology-led service expansion.

Financial highlights

• Total income rose to Rs.1,044.27 crore from Rs.1,014.09 crore; total expenses were Rs.983.24 crore, including provisions and contingencies of Rs.126.01 crore.

• Net profit increased to Rs.61.04 crore from Rs.46.39 crore; EPS was Rs.28.11, versus Rs.21.36 in FY 1999-2000.

• Total assets grew 16% to Rs.8,820 crore; deposits rose 18.6% to Rs.7,665 crore and advances increased 20.28% to Rs.4,854 crore.

• Operating expenses declined to Rs.175.04 crore from Rs.177.15 crore; interest expense fell to Rs.682.19 crore from Rs.701.45 crore.

Outlook and guidance

• Plans included 50 additional online ATMs during FY 2001-02, continued branch interconnectivity through a WAN, and customer-focused product development.

• Management highlighted innovative products and potential income opportunities from insurance deregulation, alongside emphasis on service quality and competitive positioning.