India's Federal Bank flags 1.5-2% of net worth hit from new RBI norms
- Net profit stood at 11.77 billion Indian rupees in April-June quarter
MUMBAI: Blackstone-backed Federal Bank this fiscal year expects an additional provisioning hitof around 1.5%-2% of its net worth due to the transition to a central bank-mandated framework to cover potential loan losses, the bank said on Friday.
The additional provisioning hit would be based on the bank’s net worth as of 31 March 2026, which is around 387 billion rupees ($4.02 billion); the expected credit loss framework is effective April 1, 2027.
Net profit stood at 11.77 billion rupees in April-June quarter.
Net interest income or core income at 29.46 billion rupees. Gross non-performing assets as a percentage of total assets at 1.52%.
Bank expects credit growth in mid-teens during fiscal year 2027. Loan book grew 15% year-on-year at 2.77 trillion rupees in first quarter.
Indian state-run banks estimate $30bn flow from overseas deposit scheme, sources say
Plans to offer 8-10x leverage to non-resident Indian customers under the FCNR(B) deposit scheme.
The bank plans to use FCNR (B) deposit inflow to partly refinance its existing wholesale deposit book.
Post results, Federal Bank’s stock closed 6.7% higher at 348.80 rupees per share.
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