Applications Invited for Federal Bank Hormis Memorial Foundation Scholarship

 Federal Bank invites applications for Federal Bank Hormis Memorial Foundation Scholarships for the academic year 2019-20. Students belonging to the states of Kerala, Tamil Nadu, Gujarat and Maharashtra pursuing 1^st year of MBBS, Engineering, BSc Nursing, BSc Agriculture including BSc (Hons) Co-operation & Banking with Agriculture Sciences conducted by Agriculture Universities and MBA are eligible to apply for the scholarship. 

Candidates applying for scholarship should have secured admission under merit in Government, aided and self‑financing colleges during the academic year 2019-20 and the annual family income of the applicant should be below ₹ 3,00,000/-. Children of armed forces personnel who gave up their life for the nation will be considered under a separate channel and the family income stipulation is not applicable to students falling under this category. Please refer Federal Bank’s website https://www.federalbank.co.in/corporate-social-responsibility for detailed eligibility conditions and application form. Students shall submit the duly filled in applications and required documents as mentioned in the application form to nearest branch of Federal Bank for verification on or before 31-12-2019.

GeM signs MOU with Federal Bank

 Government e-Marketplace (GeM) signed Memorandum of Understanding with Federal Bank, a leader private sector bank in the country. GeM is a marquee initiative of the Government of India offering one stop platform facilitating online procurement of common use goods and services required by various government departments, organizations and PSUs. GeM provides tools for direct purchase, bidding and reverse auction in a transparent manner for government departments.

Online integration for payments and various banking services is one of the priorities for GeM. GeM has already signed MoU with 15 Public Sector and Private Banks to enable this. Through this partnership, Federal Bank will be able to offer an array of services including transfer of funds through GeM Pool Accounts (GPA), advising of Performance Bank Guarantees (e-PBG) and Earnest Money Deposit (EMD) etc. to the registered users of the portal. The MoU will facilitate a cashless, paperless and transparent payment system on the portal and would create an efficient procurement system for government entities.

The MoU was signed by Shri S. Suresh Kumar, Addl. CEO, GeM and Shri R. Vardharajan, Country Head - Government Business, Federal Bank along with Shri Deepesh Gehlot, Director (GeM) and Shri Hemant Kumar Mahindru, State Business Head – Government Business, Federal Bank in the presence of Shri Talleen Kumar, CEO, GeM.

GeM is also working with Banks, TReDs (Trade Receivables Discounting System) and SIDBI to provide invoice financing and bill discounting to the MSMEs registered in GeM. This will help MSMEs access easy credit and do better business with Government.

Federal Bank partners with Pine Labs to enable debit card EMIs

 Pine Labs, a merchant focussed company, today announced that it has entered into a strategic alliance with Federal Bank, a leading private sector bank, to offer equated monthly instalments (EMIs) on debit card-based offline transactions to all the bank’s customers.

The objective of this association is to provide the affordability solution to debit card holders of Federal Bank, by way of POS based EMI solutions. It will allow 5.7 million^[1] Federal Bank debit card holders to instantly avail loan on EMI at the Pine Labs terminals.

Speaking on the association, Venkat Paruchuri, Chief Product Officer, Pine Labs said, “We are excited about partnering with Federal Bank to offer instant EMI for their debit card customers with the help of our cloud-based merchant payment platform that powers this quick, safe and seamless digital experience. We hope that we will together build more innovative technology solutions to cater to the requirements of the diverse customer base, in the future.”

Nilufer Mullanfiroze, Senior Vice President & Country Head-Retail Assets & Cards, Federal Bank said, “Our endeavour is to offer customer-centric digital solutions to our customers, backed by analytics and technology. In line with our guiding principle of being ‘Digital at the fore, human at the core’, we are happy to partner with Pine Labs to offer instant EMI on debit cards to our customers. This initiative will provide the convenience of credit and EMI to debit card users, in the most hassle-free manner.”

Today, Pine Labs enables equated monthly instalment (EMI) offering via credit and debit cards for 85,000 merchants across 120,000 stores in India. Pine Labs has built a network of over 90 brands and 19 banks and financial services organizations that empower EMI transactions for customers. Last month, Pine Labs signed a memorandum of understanding (MoU) with Bank of Baroda for instant EMI for millions of debit card holders of the bank. It already powers debit EMI for Axis Bank, ICICI Bank, SBI and HDFC Bank customers.

Federal Bank Quarterly Net Profit at Rs. 334 Crores, Grows 28% Y-o-Y

Federal Bank Quarterly Net Profit at Rs. 334 Crores, Grows 28% Y-o-Y

Federal Bank announced the Unaudited Financial Results for the quarter ended 31^st December 2018. The major highlights of the results on a Y-o-Y basis are as follows:

Ø  Operating profit up by 26.08%

Ø  CASA records a growth of 23.62%

Ø  Advances grow by 24.61%

Ø  Core retail and corporate advances grow 31% each

Ø  Other income grows 51.14%

WORKING RESULTS AT A GLANCE

                    (Rs. in Crore)

Particulars	Q3	Q3	% y-o-y growth
	2018-19	2017-18
Net Profit	333.63	260.01	é28.31%
Operating Profit	707.83	561.40	é26.08%
Net Interest Income	1077.29	950.00	é13.40%
Net Total Income	1422.84	1178.63	é20.72%

Q3FY18 Vs Q3FY19

·         Retail Advances including Agri Advances registered a growth of 22.99% to reach Rs. 40343.00 Cr

·         CASA increased to Rs. 41172.41  from Rs. 33304.30 Cr registering a growth of 23.62%

·         Net Advances grew 24.25% to reach Rs. 105550.12 Cr

·         NRE Deposits grew by 21.55% to reach Rs.47930.07 Cr

·         Agri Advances grew by 21.03% to reach Rs.10617.00 Cr

·         The Net worth of the Bank reached Rs.12815.13 Cr

·         Book Value per share increased to Rs. 64.60 from Rs. 60.80.

Balance Sheet

The Total Business of the Bank grew 23.46% Y-o-Y from Rs.185490.17 Cr as on 31^st December 2017 to Rs.229007.49 Cr as on 31^st December 2018. While Total Deposits reached Rs.123457.36 Cr from Rs.100537.10 Cr, Net Advances grew 24.25% to reach Rs. 105550.12 Cr.

NRE Deposits of the Bank grew by 21.55% to reach Rs. 47930.07 Cr as on 31^st Dec 2018. CASA increased to Rs. 41172.41 Cr from Rs. 33304.30 Cr.

On the Asset side, Retail Advances including Agri Advances registered a Y-o-Y growth of 22.99% to reach Rs.40343.49 Cr as on 31^st Dec 2018. Business Banking advances grew by 19.54% to reach Rs. 8906.38 Cr. Commercial Banking registered a growth of 11.28% to reach Rs. 11253.00 Cr. Corporate and Institutional advances reached Rs. 46562.84 Cr with a growth of 30.95%.

Operating Profit & Net Profit

The Operating Profit of the Bank increased by 26.08% to reach Rs.707.83 Cr as on 31^st Dec 2018. Net Profit increased by 28.31% to reach Rs.333.63 Cr. for the quarter ended 31^stDec 2018.

Margins

The Bank earned a Net Interest Income of Rs.1077.29 Cr for the quarter. The Net Interest Margin of the Bank as on 31^st December 2018 stood at 3.17%.

Asset Quality

The Gross NPA and Net NPA of the Bank as at the end of the Quarter stood at Rs.3361.23 Cr and Rs. 1817.32 Cr respectively. Gross NPA as a percentage stood at 3.14% and Net NPA as a percentage stood at 1.72%. The Provision Coverage Ratio (including technical write-offs) is 64.20%.

NET WORTH & CAPITAL ADEQUACY

The Net worth of the bank increased from Rs.11955.18 Cr as on 31^st December 2017 to Rs.12815.13 Cr as on 31^st December 2018. The Capital Adequacy Ratio (CRAR) of the Bank, computed as per Basel III guidelines stood at 12.97% as at the end of the quarter.

Footprint

The Bank has 1251 branches and 1669 ATMs as on 31^st December 2018.

Awards

·         Skoch Award in Banking and Finance (Gold category) for ‘Federal Bank cross border remittance solution’ 2018

·         Skoch order – of - merit award for ‘Open Banking API’ for qualifying among top banking and finance projects in India

·         Federal Bank adjudged as the winner of ‘best use of blockchain technology’ at  Drivers of Digital awards 2018

MAJOR FINANCIAL INDICATORS (Standalone nos.)

                                                                                                                                                      (Rs. in Crore)

Business Figures	As on 31.12.2018	As on 31.12.2017	Growth (%)
Total Deposits	123457.36	100537.10	é22.80%
CASA	41172.41	33304.30	é23.62%
Net Advances	105550.12	84953.08	é24.25%
Retail Advances including Agri	40343.49	32803.84	é22.99 %
Business Banking Advances	8906.38	7449.88	é19.55%
Commercial Banking Advances	11253.00	10112.40	é11.28%
Corporate and Institutional Banking Advances	46563.84	35556.52	é30.95%
Capital
Equity Capital	396.78	393.27
Net Worth	12815.13	11955.18	é7.19%
Capital Adequacy (%)	12.97%	14.41%
Tier I (%)	12.44%	13.84%
Tier II (%)	0.53%	0.57%