Federal Bank Q1 results: Net profit increases 18% to Rs 1,010 crore

Private sector lender Federal Bank clocked 18.3 per cent growth in net profit to Rs 1,010 crore in the first quarter of FY25 from the year-ago period on the back of healthy growth in net interest income.

Net interest income (NII) improved 19 per cent year-on-year to Rs 1,919 crore while other income increased by 25 per cent to Rs 915 crore.

The Net Interest Margin (NIM) of the bank dropped to 3.16 per cent from 3.20 per cent in Q1FY24. Sequentially, it dipped from 3.21 per cent in Q4 FY24.

Advances of the lender grew by 20.34 per cent year-on-year to Rs 2.20 trillion. Retail advances rose 19.7 per cent to Rs 70,020.08 crore whereas corporate advances grew by Rs 76,588.6 crore.

Total deposits of the bank improved by 19.6 per cent to Rs 2.6 trillion from Q1FY24. The current account and savings account (Casa) ratio stood at 31.85 per cent, down from 32.68 per cent. It also narrowed from 29.27 per cent in Q1FY24.

Its gross non-performing assets (GNPA) declined to 2.11 per cent in June 2024 from 2.38 per cent a year ago. Sequentially, it was flat as compared to 2.13 per cent in March 2024. Net NPAs slipped to 0.6 per cent in the quarter under review from 0.69 per cent in the year-ago period. Sequentially, net NPAs were flat at 0.6 per cent in March 2024.

The bank, which has 1,518 banking outlets, plans to expand and add another 100 branches in FY25.

During the post-earnings media call, Shyam Srinivasan, managing director (MD) and chief executive officer (CEO) of the bank, said, “In FY24, we added 140 branches for the full year. We are looking to add somewhere about 100 branches in FY25. In the first half, it will be about 35-40 branches and the balance in the second half.”

The board of Federal Bank has also approved a fund raise of up to Rs 6,000 crore through various securities.