Federal Bank reports 10.79% rise in net profit, net interest income grows 15%

For the quarter ended September 30, 2024, the bank reported an 18% YoY rise in operating profit to ₹1,565 crore. The total provisions including tax for the quarter jumped 37% YoY to ₹509 crore.

The bank reported improvement in asset quality, with gross non-performing assets (GNPA) coming down to 2.09% from 2.26% in the corresponding period last year. The net non-performing assets (NNPA) stood at 0.57%, which is lower than 0. 64% in the same period last year.

The bank’s return on assets (ROA) and return on equity (ROE) stood at 1.28% and 13.65%, respectively.

During the quarter, the bank reported a 15.56% YoY rise in total deposits to ₹2,68,107 crore. The bank’s current and savings accounts (CASA) saw an uptick of 11% YoY however, the CASA ratio declined by 110 basis points to 30.07%.

Meanwhile, the net advances for the quarter grew 19% YoY to ₹2,30,312 crore. The bank’s retail loan book grew by 22% YoY while the business banking book saw growth of 19% YoY. Goal loans rose by 31% YoY.

Federal Bank’s total business at the end of Q2FY25 was up 17.32% YoY to ₹4,99,418 crore.

KVS Manian, managing director and chief executive officer of Federal Bank, said the bank’s performance during the quarter was fueled by momentum across verticals. Moreover, the bank has seen an improvement in asset quality.

“Our deposits, now upgraded to AAA by CRISIL, signify a sturdy core of the franchise. Business momentum across verticals has been strong and inclusive, and asset quality improvements have been notable,” he said.

Shares of the company have risen by nearly 25% since the beginning of the year. The stock has gained over 39% in the past year.