The Federal Bank expects it to grow by 8% on this currency and achieve a two-digit growth rate on FY22 as the economy picks up. Shamy Srinivasan, MD & CEO of Federal Bank, told FE that growth is highly dependent and development appears to be growing in all sectors without large corporate loans.
“So far we have increased this amount by about 6%. Products like gold loans have done very well. Business and business banking are growing and home loans are starting to be collected in Q3. Automatic loans have performed well in selected areas, ”he said.
“It is only in large corporate loans, that we see an increase in Q3. Entering Q4 and as the economy picks up we see opportunities in this sector. We usually grow 1.6-1.8 times the average in the industry, and if India grows at the next rate, we should grow by 16-18% in FY22, ”he added.
The Kerala-based lender reported that in Q3 overall development had grown by 6%, while large corporate loans of `25 crore and above reported a 7% decline year-on-year (yo-y). Sales growth grew by 16% yy in Q3, while agricultural loans reported growth of 24%.
The bank reported a third quarter interest rate of Rs 404.10 crore. On the quality of the assets, the lender said the decline in the overall financial performance would be actually as normal as any business year. The proforma slipage of the first three installments is 1,000 rupees and in the fourth quarter, it is about $ 400. A decrease of R400 is typically a year, ”he said.
The Federal Bank also reported that the restructuring will be lower at Rs 1,500 rupees as compared to the previous Rs 3,500 rupees many customers are doing better and not choosing that. “We previously thought that reconstruction would be too high due to the impact of Covid. Thankfully it is at a very low level. If customers fulfill their requirements for the next 2-3 years, the impact of Covid will be evaluated. We have prepared it well enough, ”he added.
The bank has increased its supply chain by 1245 bps to 77.10%. The rate of service delivery including proforma slippages would be 66.12%.
Regarding the expansion of the branch, Srinivasan said the bank has plans to keep the branch light and distribution alive.
“Throught the last five years, we have added only 20 branches, and in my first five years, we have added 700 branches. We have added a lot of distributions to the preferences of relationship management and digital distribution, ”he said. The bank has 1284 branches.
“Federal Bank is a state-of-the-art digital franchise and we work to achieve flexibility. We want to be a bank that always works well over time like Dravid and Roger Federer, ”he added. The bank is likely to raise money in the second half of 2021 and is also planning to go out with its credit card.