Federal Bank shares hit new peak after reporting robust growth in Q1FY25

Shares of Federal Bank surged up to 4.7 per cent, hitting its all time high at Rs 183.25 per share on the BSE in intraday trade.

This came after Federal Bank reported robust growth in its financial metrics for the first quarter of fiscal year 2024-25 (FY25). The bank's advances surged by 20 per cent, reaching Rs 2.66 trillion compared to Rs 1.86 trillion in the corresponding period last year. Sequentially, the advances grew by 5.4 per cent.

The bank’s retail credit book expanded by 25 per cent, while the wholesale credit book saw a growth of 14 per cent. The bank maintained a retail to wholesale ratio of 56:44, the company revealed in an exchange filing on Wednesday.

In terms of deposits, Federal Bank recorded a year-on-year increase of 19.6 per cent, amounting to Rs 2.66 trillion in Q1FY25. Sequentially, deposits grew by 5.4 per cent. Customer deposits, excluding interbank deposits and certificates of deposit, totaled Rs 2.51 trillion, marking a nearly 20 per cent rise from the previous year and a 5 per cent increase from the preceding quarter.

Current account and savings account (CASA) deposits also showed positive growth, with a 9.9 per cent year-on-year increase to Rs 77,901 crore. Sequentially, CASA deposits grew by 5 per cent.

Federal Bank has a total market capitalisation of Rs 44,333 crore. It is presently trading at a price to earnings multiple of 11.46 times with an earning per share of Rs 15.28. 

At 12:34 PM; the stock of the company was up 3.51 per cent at Rs 181.20 a piece on the BSE. In comparison, the BSE Sensex index was up 0.56 per cent at 79,883.