Federal Bank, a private sector financial institution, unveiled its financial performance for the September quarter, demonstrating remarkable year-on-year growth:
Net profit surged by 35.5% to ₹954 crore, primarily attributed to reduced provisions.
The bank also witnessed notable progress in other financial aspects:
Other income experienced a 20% year-on-year growth, reaching ₹730 crore.
Net interest income, the disparity between interest earned and expended, increased by 17% year-on-year to ₹2,056 crore in Q2 FY24.
The key profitability indicator, net interest margin, edged up by a slight one basis point sequentially, reaching 3.16% as of September 30.
Total provisions amounted to ₹371 crore, reflecting a 27% year-on-year decrease.
Federal Bank’s asset quality exhibited improvement, with gross non-performing loans as a percentage of gross advances declining to 2.26%, down from 2.38% in the June quarter and 2.46% in the September quarter of FY23.
The bank’s gross advances reached ₹1.96 trillion as of September 30, compared to ₹1.64 trillion on September 30, 2022, marking a substantial 20% growth. The wholesale book saw a 17% year-on-year growth, reaching ₹87,788 crore, while aggregate retail loans amounted to ₹1.08 trillion.
Total deposits surged by 23% year-on-year, reaching ₹2.33 trillion. Within this, Casa (current and savings account) deposits totaled ₹72,589 crore as of September 30. Although total Casa deposits showed a 5% year-on-year growth, the Casa ratio, or Casa as a percentage of total deposits, decreased by 524 basis points to 31.17% due to a slower growth rate compared to total deposits.
On the trading day, Federal Bank’s shares closed at Rs.148.70 on the NSE, marking a marginal decline of 0.47%.