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The Federal Bank also surpassed its Rs 1000 crore milestone for a second straight quarter
The Kerala-headquartered Federal Bank on Monday posted a record net profit of Rs.1,056.69 crore in the quarter ended September.
This shows a growth of 10.79 percent over its net profit of Rs 954 crore in the same period last year. The Federal Bank also surpassed its Rs 1,000 crore milestone for a second straight quarter.
KVS Manian, MD & CEO of Federal Bank, said, "Q2 has been robust for the bank, driven by strong momentum across diverse operational verticals. This is clearly reflected in our consecutive surpassing of the 1000 crore net profit milestone for two quarters in a row.”
The working results show that the total income rose to Rs 7,541.23 in Q2, up by 21.91 percent. It was at Rs 6,185.70 crore in the same quarter a year ago.
The net interest income stood at Rs 2,367.23 crore, an increase of 15.11 percent as against last year’s corresponding figure of Rs 2,056.42 crore.
Balance sheet performance
The total business of the bank reached Rs. 4,99,418.83 crore, registering a growth of 17.32 percent. The total deposits increased from Rs. 2,32,868.43 crore to Rs. 2,69,106.59 crore.
On the asset side, net advances increased from Rs 1,92,816.69 crore to Rs. 2,30,312.24 crore while retail advances grew by 17.24 percent to reach Rs. 72,701.75 crore.
Business banking advances grew by 19.26 percent to reach Rs 19,121.18 crore. Commercial banking grew by 24.34 percent to Rs 24,493.35 crore and corporate advances showed a growth of 10.48 percent to reach Rs. 77,953.84 crore.
The CV/CE (commercial vehicles and construction equipment) advances grew by 43.83 percent to reach Rs.3,932.30 crore.
Asset quality
The Gross NPA (Non-Performing Asset) of the bank as at the end of Q2 FY25 stood at Rs. 4,884.49 crore, which as a percentage to Gross Advances stood at 2.09 percent.
The Net NPA and Net NPA as a percentage to Net Advances stood at Rs. 1,322.29 crore and 0.57 percent respectively.
Net worth and capital adequacy
The net worth of the bank increased from Rs 26,032.07 crore to Rs 31,108.20 crore.
The Capital Adequacy Ratio (CRAR) of the bank stood at 15.20 percent at the end of the quarter, slightly lower than last year’s 15.50 percent.
KVS Manian said he was confident that the bank would continue to build on the strong momentum achieved in Q2.
“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. We are committed to sustaining and building on this strong momentum to achieve continued success for the bank,” the MD and CEO said.
