Federal Bank has reported its financial results for the second quarter ending September 30, 2024, showcasing substantial growth across several key metrics compared to the same period last year. Here are the highlights:
Financial Performance
- Net Profit: The bank achieved a net profit of ₹1,056.69 crore, marking a 10.79% increase from ₹953.82 crore in Q2 FY24.
- Net Interest Income (NII): NII rose by 15.11%, from ₹2,056.42 crore to ₹2,367.23 crore.
- Total Income: Overall income grew by 21.91%, reaching ₹7,541.23 crore.
- Earnings Per Share (EPS): The annualized EPS is reported at ₹17.11.
- Return on Assets (ROA): ROA for the quarter was 1.28%.
- Return on Equity (ROE): ROE was 13.65%.
Business Growth
- Total Business: The bank’s total business increased by 17.32% to ₹4,994.19 crore.
- Deposits: Total deposits grew from ₹2,328.68 crore as of September 30, 2023, to ₹2,691.07 crore in 2024.
- Net Advances: Net advances rose from ₹1,928.17 crore to ₹2,303.12 crore.
- Retail Advances: Increased by 17.24% to ₹72,701.75 crore.
- Business Banking Advances: Jumped 19.26% to ₹19,121.18 crore.
- Commercial Banking Advances: Grew 24.34% to ₹24,493.35 crore.
- Corporate Advances: Rose 10.48% to ₹77,953.84 crore.
- Advances for CV/CE: Increased significantly by 43.83% to ₹3,932.30 crore.
Asset Quality
- Gross Non-Performing Assets (NPA): Stand at ₹4,884.49 crore, accounting for 2.09% of gross advances.
- Net NPA: Reported at ₹1,322.29 crore, representing 0.57% of net advances.
- Provision Coverage Ratio: Excluding technical write-offs, this was 71.82%.
Operational Metrics
- Operating Profit: The operating profit was ₹1,565.36 crore, reflecting an 18.19% year-on-year increase.
- Net Worth: Increased from ₹26,032.07 crore in Q2 FY24 to ₹31,108.20 crore as of September 30, 2024.
- Capital Adequacy Ratio (CRAR): The bank maintained a strong CRAR of 15.20%, in compliance with Basel III standards.
- Banking Infrastructure: As of September 30, 2024, the bank had 2,052 ATMs and cash recyclers along with 1,533 banking facilities.
Management Commentary
KVS Manian, the MD & CEO of Federal Bank, noted that the quarter was robust, driven by strong performance across various operational sectors. He highlighted the consecutive achievement of surpassing the ₹1,000 crore net profit milestone and the bank’s upgraded AAA rating for deposits by CRISIL, which signifies a strong core franchise. Manian emphasized the bank’s commitment to maintaining this momentum and enhancing asset quality.
Disclaimer: The information provided herein is for informational purposes only and does not constitute financial advice. It is recommended to conduct further research or consult with a financial advisor before making any investment decisions.
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