Federal Bank declines 4% on reporting 5% fall in Q3 net profit

Federal Bank reported a 5.10% decline in net profit to ₹955.44 crore for the third quarter ended December 31, 2024 (Q3FY25), compared to ₹1006.74 crore for the same quarter in the previous year. However, the bank's total income increased by 17.17% to ₹7724.90 crore for Q3FY25, compared to ₹6592.66 crore for the corresponding quarter last year.

Net interest income for the quarter grew by 14.5% YoY to a record level of ₹2,431 crore, compared to ₹2,123 crore. The strong NII growth was largely aided by a 19% YoY jump in interest income to ₹6808 crore. The interest expended for the quarter jumped 20% YoY to ₹4,373 crore as against ₹3606 crore.

Mr. KVS Manian, MD & CEO, stated, “This quarter has been pivotal for us as we strategically reoriented both the asset and liability sides of our balance sheet, addressing fundamental aspects to position the Bank strongly for the future. We have chosen to focus on granular retail deposit growth instead of high-value, expensive deposits. We have also consciously avoided low yielding or high-risk assets for growth. Notwithstanding this disciplined approach, we have achieved year-on-year growth of 15% in advances and 11% in deposits, positioning us competitively within the sector

On a consolidated basis, the bank reported a 10.77% decline in its net profit to ₹948.70 crore for the quarter ended December 31, 2024, compared to ₹1063.24 crore for the same quarter in the previous year. However, the bank's total income increased by 17.19% to Rs 8196.02 crore for Q3FY25, compared to Rs 6993.55 crore for the corresponding quarter last year.