Federal Bank slumps 7% after profit declines in Q3 results; details here

Federal Bank share slipped 6.72 per cent at Rs 661.20 a piece on the BSE in Tuesday’s intraday trade after the bank released its financial results for the third quarter ending December 31, 2024 (Q3FY25), on Monday, revealing a decline in net profit and a sharp rise in provisions. 

 

Federal Bank's net profit dropped 5 per cent year-on-year (Y-o-Y) to Rs 955.4 crore in Q3FY25, compared to Rs 1,006.7 crore in the same period last year. However, net interest income (NII) reached a record Rs 2,431.3 crore in Q3FY25, reflecting a 14.5 per cent Y-o-Y increase.  

 

The bank demonstrated improved asset quality, with gross non-performing assets (NPA) falling to Rs 4,553.3 crore in Q3FY25 from Rs 4,884.5 crore in the previous quarter. Similarly, net NPA reduced to Rs 1,131.2 crore from Rs 1,322.9 crore quarter-on-quarter (Q-o-Q). The gross NPA ratio improved to 1.95 per cent in Q3FY25, down from 2.09 per cent in Q2FY25, while the net NPA ratio declined to 0.49 per cent from 0.57 per cent.  

 

Provisions saw a significant rise, climbing to Rs 292.33 crore in Q3FY25 compared to Rs 158.35 crore in Q2FY25 and Rs 91.22 crore in Q3FY24. The provision coverage ratio (PCR) stood at 74.21 per cent.  

 

Federal Bank also reported robust Y-o-Y growth in deposits, advances, and other key product categories, highlighting strong business momentum. Total deposits grew by 11 per cent Y-o-Y, while net advances increased by 16 per cent Y-o-Y. 

 

The average CASA (current account savings account) balance rose by 11 per cent Y-o-Y, and the bank's credit card portfolio showed a 24 per cent Y-o-Y growth, underscoring the strength of its core business operations.

 

Federal Bank has a total market capitalisation of Rs 43,852.50 crore.  Its shares are listed at a price to earnings multiple of 11.09 and at an earning per share of Rs 16.21.

 

At 10:05 AM, the stock price of the company fell by 6.18 per cent at Rs 179.20a piece on the BSE. By comparison, the BSE’s Sensex was up 0.55 per cent to 75,783.54 level.