India’s Federal Bank’s gross advances rise 10%
By Vinu Lal
08:00, 4 October 2021
Indian private sector lender Federal Bank’s gross advances rose 10% to INR1,373bn ($18.48bn) for the quarter ended 30 September, up from the INR1,252.09bn recorded during the same quarter last year, the bank said in a stock exchange notice. For the quarter ended June, the lender had posted gross advances of INR1,327.87bn.
New tie-ups across assets, liabilities and payments businesses helped contribute to the bank’s growth. During the quarter under review, the lender’s total deposits rose 10% to INR1,719.95bn, up from INR1,567.47bn during the same year-ago period.
CASA growth
The bank’s current account and saving deposits – CASA or low-cost deposits – were up 18% to INR621.91bn from INR527.86bn in the quarter ended September of the previous financial year.
Federal Bank, headquartered in the southern state of Kerala, recorded an 11% rise in customer deposits at INR1,687.43bn in the September quarter, compared with INR1,520.21bn in the same year-ago quarter, it added.
During the reporting period, the lender’s liquidity coverage ratio stood at 225.94% compared with 266.27% of the September quarter of last year and 215.96% in the first quarter of this financial year.
Next-generation banking
“Federal Bank is transforming itself into a next-generation private bank via its neo-banking tie-ups across assets, liabilities and payments businesses,” according to a report by stock analyst Emkay Global.
The bank’s retail portfolio has traditionally been dominated by secured mortgages and gold loans, however, it has now diversified into higher-margin products.
Shares price
Federal Bank’s share price, which opened at INR84.50, was up 2.29% at INR85.05 during intraday trading on the National Stock Exchange.
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