Q4 2024 Federal Bank Ltd Earnings Call Transcript
Key Points
- The Federal Bank Ltd (BOM:500469) achieved an all-time high annual profit and crossed significant milestones in total business and balance sheet size.
- The bank expanded its branch network by nearly 10%, reaching over 1,500 branches.
- Operationally, Q4 was one of the strongest quarters ever, with margins expanding and asset quality remaining pristine.
- The bank's credit quality showed remarkable consistency, with slippages lower than recoveries and upgrades.
- The bank's footprint expansion across the country has led to significant growth in CASA in non-traditional geographies.
- The bank faced a one-off impact due to wage-related matters, affecting the reported net profit for Q4.
- The cost of deposits remains elevated, impacting the overall margin expansion.
- There was a pause in the co-branded credit card partnership, which could affect fee income growth.
- The bank's OpEx growth remains high, driven by investments in new branches and technology.
- The NR deposit growth was slower compared to domestic deposits, indicating a shift in remittance behavior.
Ladies and gentlemen, good day, and welcome to the Q4 FY '24 Earnings Conference Call of The Federal Bank Limited.
[Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Souvik Roy, Head, Investor Relations, The Federal Bank Limited. Thank you, and over to you, sir.
Thank you, Sagar. Good evening to all of you, and welcome to our earnings call to discuss the results for the quarter that went by. I'm sure you've all had a chance to go through the results deck, (inaudible) and also heard our post results press con, in which our MD has probably answered a lot of questions already.
We have had a strong year of performance, and we have delivered on most of our aspirational return ratios with the right consistency on earnings while maintaining a very good balance sheet as well. During the year, we also maintained the right growth trajectory as you have seen in our deck, of course, across all our
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