Federal Bank shares climb 7% after posting Q2 results; PAT up 11% yoy

Federal Bank on Monday after market hours reported a 10.8 per cent Y-o-Y increase in its net profit for the second quarter ended September 30, 2024, with profits rising to Rs 1,056.7 crore

Federal Bank shares advanced 7.4 per cent on Tuesday and registered an intraday high of Rs 198.4 per share on BSE. The buying interest sparked after the company reported good Q2FY25 results.

 

Around 10:00 AM, Federal Bank shares were up 7.04 per cent at Rs 197.7 per share. In comparison, the BSE Sensex was down by 0.48 per cent at 79,619.67. The market capitalisation of the company stood at Rs 48,382.74 crore. 

 

On Monday, after market hours, Federal Bank reported a 10.8 per cent year-on-year (Y-o-Y) increase in its net profit for the second quarter ended September 30, 2024, with profits rising to Rs 1,056.7 crore from Rs 954 crore in the corresponding quarter of the previous financial year.

 

 

The bank’s net interest income (NII) increased 15 per cent Y-o-Y and stood at Rs 2,367.3 crore as compared to Rs 2,056.4 crore in the same period of the previous year. 

 

However, the net interest margin dropped to 3.12 per cent from 3.22 per cent during the quarter.

 

On the asset quality front, the gross non-performing asset ratio of the bank improved marginally to 2.09 per cent from 2.11 per cent in the previous quarter. Similarly, the net non-performing asset (NPA) ratio improved to 0.57 per cent from 0.6 per cent in the last quarter. The provision coverage ratio, excluding technical write-off, was 71.82 per cent.

 

The capital adequacy ratio (CRAR) of the bank, computed as per Basel III guidelines, stood at 15.2 per cent for the quarter under review.

 

Federal Bank's total deposits rose from Rs 2.3 trillion in Q2FY24 to Rs 2.6 trillion as of September 30, 2024. On the asset side, net advances rose from Rs 1.9 trillion in Q2FY24 to Rs 2.3 trillion as of September 30, 2024. Retail advances grew by 17.24 per cent to reach Rs 72,701.75 crore.  

 

Business banking advances grew by 19.26 per cent to reach Rs 19,121.18 crore. Commercial banking advances grew by 24.34 per cent to Rs 24,493.35 crore. Corporate advances registered a growth of 10.48 per cent to reach Rs 77,953.84 crore. The commercial vehicle/construction equipment advances grew by 43.83 per cent to reach Rs 3,932.30 crore.

 

In the past one year, Federal Bank shares have gained  31.03 per cent against Sensex's rise of 24.7 per cent.