Federal Bank clocked its highest ever quarterly net profit at ₹1,010 crore in the first quarter (Q1) of FY25, up 18 per cent year-on-year, supported by healthy growth in net interest income and non-interest income.
The private sector bank had reported a net profit of ₹854 crore in the year-ago period.
Net interest income (interest earned less interest expended) in the reporting quarter was up 19 per cent yoy at ₹2,292 crore (₹1,919 crore in the year-ago period).
Other income, including fee-based income, treasury income and recovery in written-off accounts, rose 25 per cent yoy to ₹915 crore (₹732 crore).
Non-tax provisions declined 7 per cent yoy to ₹144 crore (₹156 crore). Net interest margin rose to 3.16 per cent against 3.20 per cent in the year-ago period.
GNPAs position improved to a shade to 2.11 per cent of gross advances as at June-end 2024 against 2.13 per cent as at March-end 2024. Net NPAs position was unchanged at 0.60 per cent of net advances.
Gross advances increased by 20 per cent yoy to ₹2,24,161 crore as at June-end 2024 on the back of 25 per cent growth in retail advances and 15 per cent growth in wholesale book.
Total deposits rose by 20 per cent yoy to stand at ₹2,66,065 crore as at March-end 2024. Low-cost CASA (current account, savings account) deposits declined to 29.27 per cent of total deposits against 31.85 per cent in the year ago quarter.
Shyam Srinivasan, MD & CEO, said, “...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,”
He observed that the current capital adequacy ratio of 15.57 per cent can support 18-20 per cent credit growth over the next 18 months.