On March 13, Federal Bank said it has stopped issuance of new co-branded credit cards and is in the process of rectifying the areas that are deficient and will seek regulatory clearance prior to resumption of new issuance
Federal Bank has also reportedly shortlisted two internal candidates for the MD & CEO role
Credit growth, for FY23, should be in the “high teens” and deposit growth in the “pre-teens,” or a 10-to-12 percent range, MD and CEO Shyam Srinivasan said
Srinivasan’s comments came after Federal Bank categorically clarified that reports of a merger with Kotak Bank were speculative in nature.
The bank is yet to identify a candidate in microfinance sector for acquisition, Srinivasan said
The bank’s credit is in reasonable shape, adequate provisions in place and its liability franchise should “power up” in this financial year, the managing director said.
Srinivasan is among the few foreign bankers who chose to move to smaller Indian banks after long, successful stints in foreign banks. In the ten years, Srinivasan headed the bank, Federal Bank has changed its image of an old-generation private lender to a digital friendly private bank with national focus.
On a standalone basis, the private sector bank's net profit for the quarter also increased by 58 per cent to Rs 477.81 crore, while the same for the entire fiscal came at Rs 1,590 crore as against 1,542 crore.
Network18 Sanjeevani – A Shot Of Life was launched by Shyam Srinivasan, Chief Executive Officer of Federal Bank, and Actor and Campaign Ambassador Sonu Sood at the Attari Border.
Federal Bank is keen to acquire a microfinance institution as part of its inorganic growth strategy, said the CEO. But, the bank hasn’t identified any firm yet
A margin call is usually triggered due to a shortfall of money or payment default after an investor has borrowed money to buy shares.
Finance minister Arun Jaitley told CNBC-TV18 a few days back that there could be some steps announced for non-performing asset (NPA) resolution. In an interview to CNBC-TV18, Shyam Srinivasan, MD & CEO of Federal Bank said banking sector does need support in terms of asset quality resolutions.
Speaking to CNBC-TV18 Shyam Srinivasan, Managing Director & Chief Executive Officer, Federal Bank said that the quarter was a good quarter in which they saw 32 percent credit growth on a year on year basis.
Going forward there will be good availability of liquidity and digitisation of the banking sector will lead to behavioral and client changes, says Shyam Srinivasan, MD and CEO of Federal Bank.
Federal Bank's major challenge has been its restructured book. But it has come down to Rs 1500 crore in the fourth quarter of FY16 from Rs 2300 crore.
"At a time when some of the large and medium-sized banks are going through stress, with their focus more around getting their consolidation and act right, it opens up a remarkable space and opportunities for us," Federal Bank Managing Director and CEO Shyam Srinivasan told PTI.
In an interview to CNBC-TV18, Shyam Srinivasan, managing director and chief executive officer, Federal Bank says the bank may not be able to cut rates any further, but says other banks may be able to cut base rates only around the next policy.
Much of the slippages during the quarter have come in the corporate and SME loan accounts, says Shyam Srinivasan, MD & CEO of Federal Bank
In an interview to CNBC-TV18, Shyam Srinivasan, MD & CEO, Federal Bank says the bank will decide on a cut in base rate shortly, but said the entire 50 basis point cut by the RBI will not be passed on to borrowers.
Shyam Srinivasan MD & CEO, Federal Bank very excited about the launch of selfie-account by the bank, which would be a convenient method for banking and urges customers to avail the facility.
South-based lender Federal Bank, which reported a 36 percent decline in net profit for the June quarter on provisioning impact from a large borrower, said another Rs 100-crore account is facing stress, which will be dealt with during the September quarter.
Shyam Srinivasan, MD and CEO, Federal Bank, is not alarmed on a full-year basis that margins will get impacted as long as the cost of funds keep going down.
Federal Bank's net interest margin for FY15 was 3.27 percent, within the guidance range of 3.23-3.30. Shyam Srinivasan, MD & CEO of Federal Bank, says the goal is to improve on this figure.
The Finance Minister presented budget with a multi-year view. He has laid the roadmap of what can be expected over the next 4 years and done a fine balancing act between the present fiscal challenges while dealing with high expectations of the government, says Shyam Srinivasan, MD & CEO, Federal Bank.
Federal Bank's other income for Q3 jumped by 40 percent to Rs 220 crore against Rs 156.2 crore, Y-o-Y.