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Federal Bank Becomes India’s First Bank To List Payment Gateway On New Tax Platform

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Federal Bank Becomes India’s First Bank To List Payment Gateway On New Tax Platform

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Federal Bank has become India’s first bank to list its Payment Gateway platform on the income tax department’s TIN 2.0 platform, which went live on July 1 this year. The Payment Gateway has been enabled, providing one more payment option to taxpayers, who can now make their payments with ease, using modes such as credit/ debit card, UPI, NEFT/RTGS and internet banking.

Harsh Dugar, group president and country head (wholesale banking) of Federal Bank, said the Kerala-based lender is actively using digital as a key enabler of superior experience and transaction convenience. “With an increasing number of digital-first folks joining the workforce and scaling up of digital transactions across the ecosystem, we are sure that taxpayers will appreciate the convenience of tax payments brought forth by the Federal Bank by easing the process and providing multiple options.”

Federal Bank in July partnered with the Central Board of Direct Taxes (CBDT) to assist taxpayers in making their payments through the e-pay tax facility in the e-filing portal of the income tax. The bank also received the government’s approval to collect direct tax during the past financial year and has been made effective since July 1, 2022.

The lender’s net profit in the June 2022 quarter jumped 63.5 per cent to Rs 601 crore, on a steep decline in money set aside for bad loans. The South-based lender had reported a net profit of Rs 367 crore in the year-ago period.

Its core net interest income grew 13.1 per cent to Rs 1,605 crore during the reporting quarter on a 16 per cent advances growth and a 0.07 per cent expansion in the net interest margin to 3.22 per cent. Overall, other income dipped 30.2 per cent to Rs 453 crore, while the operating profit was also down by 14.1 per cent to Rs 973 crore.

The profit on sale of securities came at Rs 12 crore for the quarter under review as against Rs 394 crore a year ago, while the bank management said that the overall fee income came at Rs 441 crore as compared to Rs 255 crore in the preceding year.

The bank’s total provisions more than halved to Rs 373 crore during the June quarter, majorly on the back of a reduction in the loan loss provisions which narrowed down to Rs 150 crore for the reporting quarter.

From an asset quality perspective, the stock of gross non-performing assets came at 2.69 per cent at the end of June. The same stood at 3.50 per cent in the previous year and 2.80 per cent three months ago. The fresh slippages came at Rs 444 crore, with retail contributing a bulk Rs 204 crore.

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