Expect loan growth to return to 15-18%: Federal Bank CEO
Shyam Srinivasan, CEO of Federal Bank, tells CNBC-TV18 the lender does not want to be unsecured portfolio-heavy, and expects its loan growth to return to 15-18 percent. It also expects organic loan growth to pick up in the coming quarters, he adds.
Federal Bank shares rise by Rs 2.3 or 2.5 percent to Rs 93 apiece on BSE despite overall weakness in the market.
During market hours on Friday, Federal Bank reported a 13.1 percent year-on-year increase in net profit to Rs 540.5 crore for the January-March period. Its net interest income — or the difference between interest earned and interest paid — came in at Rs 1,525.2 crore for the three-month period, up 7.4 percent on year, according to a regulatory filing.
Analysts in CNBC-TV18 poll had estimated the bank’s quarterly net profit at Rs 557.6 crore and NII at Rs 1,587.6 crore.
The lender’s net interest margin — a key measure of profitability — slipped to 3.16 percent in the January-March period from 3.27 percent in the previous quarter.