Federal Bank Q1 Results: Registers Highest Ever Quarterly Net Profit On Stronger Balance Sheet

The financial results for the quarter ending June 30, 2024, were released by Federal Bank. For the quarter that ended on June 30, 2024, the bank reported highest highest-ever quarterly operating profit of Rs. 1500.91 Cr and a net profit of Rs. 1009.53 Cr. Operating profit increased by 15.25% in comparison to the previous year. As of June 30, 2024, the bank's total business has grown to Rs. 486871.33 Cr, representing a 19.92% rise. The total amount of deposits rose from Rs. 222495.50 Cr on June 30, 2023, to Rs. 266064.69 Cr on June 30, 2024.

Net advances on the asset side went up from Rs. 183487.41 Cr on June 30, 2023, to Rs. 220806.64 Cr on June 30, 2024. Retail Advances increased to Rs. 70020.08 Cr., a 19.75% growth in Q1FY25. Advances from business banking climbed by 20.45% to Rs. 18159.34 Cr. To Rs. 22687 Cr, commercial banking saw a growth of 23.71%. At Rs. 76588.62 Cr., corporate advances had a spike of 12.20%.

Mr. Shyam Srinivasan, Managing Director and CEO of the Bank said, "I am encouraged that we have had a resoundingly strong start to FY 25 and delivered our highest ever quarterly profits. With an Industry leading growth in both deposits and assets we are gaining share consistently. Our overall focus of dialing up our physical and digital presence is helping us reach a larger footprint across India. It's been a quarter where we recorded many firsts, however most noteworthy was the fact that our pioneering technology initiatives have been awarded by very reputed stakeholders. We believe the good start; stable credit quality and sustainable retail deposit traction should help us move further towards our aspiration of being the Most Admired Bank."

As of June 30, 2024, Net Interest Income had grown by 19.46%, from Rs. 1918.59 Cr in Q1FY24 to Rs. 2291.98 Cr In the quarter under review. The bank's overall income increased by 25.87% to Rs. 7246.06 Cr. The annualised earnings per share (EPS) is Rs 16.60. As of the end of Q1 FY25, the bank's gross non-performing assets (NPA) were Rs. 4738.35 Cr, or 2.11% of Gross Advances.

As of June 30, 2024, the net NPA and Net NPA as a percentage of net advances were Rs. 1330.44 Cr and 0.60%, respectively in Q1FY25.

The bank's quarterly ROA and ROE were 1.27 per cent and 13.64%, respectively. As of June 30, 2024, the bank's net worth had climbed from Rs. 22247.75 Cr in Q1FY24 to Rs. 30300.84 Cr in Q1FY25. As of the end of the quarter, the bank's Capital Adequacy Ratio (CRAR), which is calculated in accordance with Basel III rules, was 15.57 per cent. As of June 30, 2024, the bank had 1518 banking units, 2041 ATMs, and cash recyclers.