Federal Bank Limited on Monday posted a profit of Rs 1000.16 crore for the quarter ended September 2023, up 35.0 per cent in comparison to Rs 740.91 crore during the same quarter last year, surpassing estimates. It posted total interest earned during the second quarter of FY24 at Rs 5791.28 crore, up 36.0 per cent as against Rs 4258.93 crore during the second quarter of previous year.
The private sector bank posted a total income of Rs 6548.20 crore during the quarter in review, up 34 per cent from Rs 4886.58 crore during the same period last year. Meanwhile, total expenditure during the quarter stood at Rs 5147.92 crore, up 42.8 per cent as against Rs 3605.43 crore a year earlier. Federal Bank reports its highest ever Net Interest Income at Rs 2056.42 crore, up 16.72 per cent.
“The Q2 results are a sign of many of our initiatives coming together well and has helped us deliver our highest ever profits. Some of the marquee investments we raised in Q2 are a true testimony to our governance, social and environmental commitment standards. We are pleased to deliver on our commitments made to them and do stay determined to make continued progress on all our chosen areas in pursuit of our vision of being the Most Admired Bank,” said Shyam Srinivasan, Managing Director & CEO, Federal Bank.
Federal Bank’s asset quality
The total gross NPA was brought down to 2.27 per cent from 2.45 per cent in the year-ago quarter, net NPA was at 0.68 per cent as against 0.82 per cent during Q2FY23.
Meanwhile, on a standalone basis, Federal Bank posted Q2 profit at Rs 953.82 crore. The private sector lender said that the total business of the bank reached Rs 425685.12 crore, up 21.49 per cent from Rs 189145.71 crore during the same period last year. On the asset side, net advances increased from Rs 161240.32 crore as on 30th September 2022 to Rs 192816.69 crore on 30th September 2023. Retail Advances grew by 18.05 per cent to reach Rs 62009.00 crore. Business Banking advances grew by 18.16 per cent to reach Rs 15997.14 crore. Commercial Banking grew by 23.82 per cent to Rs 19729.00 crore. Corporate Advances registered a growth of 14.91 per cent to reach Rs 68058.63 crore from Rs 59228.42 crore.
Operating profit, meanwhile, was at its highest ever at Rs 1324.45 crore. While the total deposits increased by 23.12 per cent, total net advances increased by 19.58 per cent.
In terms of presence, the bank had 1389 branches and 1935 ATMs/ Recyclers as on 30th September 2023.