Federal Bank has reported a strong performance for the financial year ended March 31, with net profit rising to ₹4,051 crore, an 8.9% increase year-on-year. The bank's total business crossed the ₹5 lakh-crore milestone, growing 12.24% to reach ₹5,18,483 crore, the bank said in a press statement. Total income increased 19.39% to Rs 30,166 crore.
In what the bank termed its `decade-best' in asset quality, gross non-performing assets (GNPA) dropped to 1.84% while net NPA fell to 0.44% as on March 31. The provision coverage ratio improved to 75.37%, and capital adequacy under Basel III stood strong at 16.40%.
The bank's net advances grew 12.15% to ₹2,34,836.39 crore. Retail advances rose 14.50% to ₹77,212.16 crore, while gold loans—including ADLG—registered a 20.93% growth to ₹30,505 crore. Commercial banking advances surged 26.76% to ₹27,199 crore, and corporate advances rose by 8.39% to ₹79,773.79 crore.
The bank's total deposits increased by 12.32% to ₹2,83,647 crore. The bank’s CASA (current and savings account) growth and granular deposit base continued to support margin stability, with net interest margin (NIM) for Q4 FY25 at 3.12%.
The bank reported a return on assets (RoA) of 1.24% and return on equity (RoE) of 12.82% for the March quarter. Operating profit for Q4 came in at ₹1,465 crore.
Other income saw a notable uptick of 33.44% YoY in Q4, reaching ₹1,005.95 crore, driven largely by strong fee income performance, which grew 30.11% YoY.
Federal Bank's net worth increased by 13.86% to ₹33,121 crore. The board of directors has recommended a 60% dividend (₹1.20 per equity share of face value ₹2), subject to shareholder approval at the upcoming AGM.
During FY25, the bank rolled out several initiatives, including a revamp of branch operations through ‘Project Udaan’, a new corporate internet banking platform ‘FedOne’, and data-driven pricing strategies.
The bank added 85 new banking outlets during the year, taking its total branches to 1,589.
