Federal Banks are generally owned by the government of a particular country, it is generally seen as the bank of a country, like the central bank. These federal banks are important in funding the government’s social programmes.
On Monday, Federal Banks reported highest ever quarterly profit of Rs. 477.81 Crore for the fourth quarter of financial year 2021. This was the highest year on year profit incurred, mainly due to the lower provisioning. Provisions and contingency for the fourth quarter has come down by 57.29% year on year to Rs. 242.33 crore.
The Kerala based lender has reported a profit of some Rs. 301.23 Crore in FY20 and now Rs. 404.10 Crore in third quarter of FY21. For the complete fiscal year the lender reported a profit of more than Rs 1500 Crore. Though the total income of bank declined in last fiscal year by 6.5%, but it saw 2% rise, as when the lender told about the standalone profit.
And as Shrinivasan, MD and CEO of Federal Bank says, that amidst all of the struggling environment and growth, gold and CASA became the shining source for them. And this helped them to give a highest yearly profit.