Federal bank surged 7.28% to Rs 198.15 after the private lender's standalone net profit rose 10.78% to Rs 1,056.69 crore in Q2 FY25 as against Rs 953.82 crore posted in Q2 FY24.
Total income jumped 21.91% year on year (YoY) to Rs 7,541.23 crore in the quarter ended 30 September 2024.Operating profit before provisions and contingencies stood at Rs 1,407.01 crore in second quarter of 2024, up 9.87% YoY.
During the quarter, net interest income grew 15.11% YoY Rs 2,367.23 crore. Net interest margin de-grew to 3.12% in Q2 FY25 from 3.22% in Q2 FY24.
Net worth of the Bank increased 19.49% YoY to Rs 31,108.20 Cr, as on 30th September 2024. The Capital Adequacy Ratio (CRAR) of the Bank, computed as per Basel III guidelines stood at 15.20% as at the end of the quarter. Provision Coverage Ratio excluding Technical Write Off was 71.82%.
As of 30 September 2024, the gross non-performing assets (GNPA) increased by 10.10% to Rs 4,884.49 crore, up from Rs 4,436.05 crore on 30 September 2023.
Similarly, the net non-performing assets (Net NPA) rose by 7.51% to Rs 1,322.29 crore, compared to Rs 1,229.81 crore a year earlier, on 30 September 2023.
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As of 30 September 2024, the gross non-performing assets (GNPA) ratio stood at 2.09%, a decrease from 2.26% on 30 September 2023. Meanwhile, the net non-performing assets (Net NPA) ratio was 0.57% as of 30 September 2024, down from 0.64% a year earlier.
Gross advances recorded a growth of 19.31% YoY to Rs 2,33,820 crore and total deposits climbed 15.56% YoY to Rs 2,32,868 crore as of 30 September 2024.
During the year, net advances increased from Rs 1,92,816.69 crore as of 30 September 2023 to Rs 2,30,312.24 crore on 30 September 2024.
Retail advances grew by 17.24%, reaching Rs 72,701.75 crore. Business banking advances rose by 19.26% to Rs 19,121.18 crore, while commercial banking advances increased by 24.34% to Rs 24,493.35 crore. Corporate advances recorded a growth of 10.48%, reaching Rs 77,953.84 crore. Additionally, CV/CE advances surged by 43.83% to Rs 3,932.30 crore.
The CASA deposits grew 11.48% YoY to Rs 80,926 crore in Q2 FY25 and CASA ratio slipped to 30.07% in Q2 FY25 from 31.17% posted in Q2 FY24.
For the quarter, the return on assets (ROA) of the bank stood at 1.28%, while the return on equity (ROE) was 13.65%.
On half year basis the banks standalone net profit increased 14.30% to Rs 2,066.22 crore in H1 FY25 as against Rs 1,807.56 crore posted in H1 FY24. The companys revenue from operation jumped 23.81% YoY to Rs 14,787.29 crore in H1 FY25.
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.
Meanwhile, the company's board of directors has approved the key information document for raising funds through the issuance and allotment of non-convertible debentures, with a total amount not exceeding Rs 1,500 crore.
Federal Bank operates through four segments: treasury, corporate or wholesale banking, retail banking and other banking operations. The Bank has 1,533 banking outlets and 2,052 ATMs and Cash Recyclers as on 30 September 2024.
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