Federal Bank profit rises marginally to Rs 906 crore in March quarter

Federal Bank Q4 earnings: The Kerala-based private sector lender - Federal Bank - on Thursday reported marginal rise in net profit for January-March quarter despite its asset quality showing an improvement and a write back of Rs 94.60 crore in terms of provisions. Federal Bank's net profit at the end of fourth quarter of last financial year came in at Rs 906 crore as against Rs 903 crore during the same period last year.

Its net interest income or the difference between interest earned on loans and expended on deposits rose 15 per cent to Rs 2,195.11 crore versus Rs 1,909.29 crore during the corresponding period last year.

Federal Bank's asset quality showed a slight improvement as its gross non-performing assets (NPA), as a percentage of total advances, came in at 2.13 per cent versus 2.29 per cent in the previous quarter and 2.36 per cent in the year ago period.

In absolute terms, gross NPAs came in at Rs 4,528.87 crore.

Its net NPAs, as a percentage of total advances, improved 0.60 per cent as against 0.64 per cent in the previous quarter.

“FY 24 was yet another strong year which saw us set new benchmarks in our journey towards building the Most Admired Bank. With a 10% increase in our footprint, our branches now dot the map, across the length and breadth of India. The physical distribution is buttressed with significant investments in Technology and Digital capabilities, helping us serve clients in over 15000 pin codes. We look forward to the year ahead with confidence and are focused on delivering many bespoke customer propositions that establishes the presence of "Brand Federal” as the First Choice for our valued customers," said Shyam Srinivasan, Managing Director & CEO, Federal Bank.

On the asset side, net advances increased from Rs 17,4446.89 crore as on March 31, 2023 to Rs 2,09,403.34 crore at the end of March quarter. Retail advances grew by 20.07 per cent to Rs 67,435.34 crore.

Business Banking advances grew by 21.13 per cent to reach Rs 17,072.58 crore, Commercial Banking grew by 26.63 per cent to Rs 21,486.65 crore and Corporate Advances registered a growth of 11.97 per cent to Rs 73,596.09 crore.

Total Deposits increased from Rs 2,13,386.04 crore to Rs 2,52,534.02 crore as on March 31, 2024, registering a growth of 18.35 per cent.

Federal Bank shares surged over 4 per cent to Rs 169.20 after its earnings announcement.