Federal Bank: First payment gateway to be listed on the new tax platform

The Kerala-based Federal Bank is listed in the Income Tax Department’s TIN 2.0 platform and now lists the Payment Gateway platform as the first bank. The “Payment Gateway” has been enabled since the TIN 2.0 platform went live on July 1 of this year, giving taxpayers one more payment option. They can now easily make their payments using methods like Credit/Debit Card, UPI, NEFT/RTGS, and Internet Banking.

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Key Points:

• Federal Bank is actively utilising digital as a key facilitator of enhanced experience and transaction convenience.
• In order to let taxpayers use the e-pay tax facility in the income tax e-filing portal, Federal Bank cooperated with the Central Board of Direct Taxes (CBDT) in July.
• The government also granted the bank permission to collect direct tax for the previous fiscal year; this permission is now in effect as of July 1, 2022.

About the Federal Bank Revenue:

• Due to a sharp drop in the amount set aside for bad loans, the lender’s net profit in the June 2022 quarter increased by 63.5% to Rs 601 crore.
• The South-based lender had previously recorded a net profit of Rs 367 crore.
• Its core net interest income increased 13.1% to Rs 1,605 crore during the reporting quarter thanks to a growth in advances of 16% and an increase in the net interest margin of 0.07 percentage points to 3.22 percent.
• Overall, other revenue decreased by 30.2% to Rs 453 crore, while operating profit decreased by 14.1% to Rs 973 crore.
• The profit on the sale of securities for the quarter under review was Rs 12 crore, down from Rs 394 crore a year earlier.
• The bank management reported that the total fee income was Rs 441 crore, up from Rs 255 crore the year before.
• In the June quarter, the bank’s total provisions more than halved to Rs 373 crore, largely due to a decrease in loan loss provisions, which decreased to Rs 150 crore for the reporting quarter.
• The stock of gross non-performing assets, measured from the standpoint of asset quality, was 2.69 percent at the end of June. 3.50 percent the year before and 2.80 percent three months prior, respectively, were the same.
• The new slippages cost Rs 444 crore, with retail accounting for the lion’s share at Rs 204 crore.

Important Takeaways for All Competitive Exams:

• Group President & Country Head Wholesale Banking Federal Bank: Harsh Dugar
• RBI Governor: Shaktikanta Das

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