Federal Bank Q2 Results: Net Profit Rises 10.79% To Rs 1056.69 Cr; NII Surged 15.11%

The financial results for the quarter that ended on September 30, 2024, were released by the Federal Bank. The following are the main points of the outcomes on a year-on-year basis. In Q2FY25, the bank reported a net profit of Rs 1056.69 Cr, up 10.79% year-over-year from Rs 953.82 Cr in Q2FY24. As of September 30, 2024, net interest income increased 15.11 percent, from Rs. 2056.42 Cr to Rs. 2367.23 Cr. The bank's overall income increased by 21.91% to Rs. 7541.23 Cr. The annualised earnings per share (EPS) is Rs 17.11. The bank's ROA and ROE for the quarter were 1.28 percent and 13.65 percent, respectively.

As of September 30, 2024, the bank's total business has grown by 17.32% to Rs. 499418.83 Cr. The total amount of deposits rose from Rs. 232868.43 Cr on September 30, 2023, to Rs. 269106.59 Cr on September 30, 2024. Net advances on the asset side rose from Rs 192816.69 Cr on September 30, 2023, to Rs 230312.24 Cr on September 30, 2024. Retail Advances reached Rs. 72701.75 Cr, a 17.24% growth. Advances from business banking jumped by 19.26% to Rs. 19121.18 Cr. Commercial banking reached Rs. 24493.35 Cr, a 24.34% growth. Corporate Advances had a 10.48% rise, reaching Rs. 77953.84 Cr. The advances for CV/CE increased by 43.83% to Rs. 3932.30 Cr.

For the quarter that ended on September 30, 2024, the bank reported an operating profit of Rs. 1565.36 Cr and a net profit of Rs. 1056.69 Cr. On an annual basis, operating profit increased by 18.19%. In doing so, the bank surpassed the Rs 1000 Crore net profit threshold for the second straight quarter, having previously made Rs 1010 Cr. As of the end of Q2 FY25, the bank's gross non-performing assets (NPA) was Rs. 4884.49 Cr, representing 2.09% of gross advances. As of September 30, 2024, the Net NPA and Net NPA as a percentage of Net Advances were Rs. 1322.29 Cr and 0.57%, respectively. With technical write-offs excluded, the provision coverage ratio was 71.82 percent.

KVS Manian, MD & CEO of Federal Bank, stated, "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. 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 bank's net worth climbed from Rs. 26032.07 Cr in Q2FY24 to Rs. 31108.20 Cr as of September 30, 2024. The bank's Capital Adequacy Ratio (CRAR), calculated in accordance with Basel III criteria, was 15.20% at the end of the quarter. In addition to 2052 ATMs and cash recyclers, the bank had 1533 banking facilities as of September 30, 2024.