Federal Bank Q2 Results: Net profit Surges To Rs 953.82 Cr
On 16 October, Federal Bank announced a substantial year-on-year increase of 35.54 per cent in its net profit, reaching Rs 953.82 crore for the July-September quarter of the current fiscal year. This notable growth was primarily attributed to the bank's increasing net interest income and an improved asset quality.
During this period, the bank's gross non-performing asset (GNPA) improved, decreasing from 2.38 per cent in Q1FY24 to 2.26 per cent. Similarly, the bank's net non-performing asset (NPA) reduced to 0.64 per cent, down from 0.69 per cent year-on-year.
In terms of absolute figures, the gross NPA of the bank amounted to Rs 4,436.05 crore in July-September, compared to Rs 4,031.06 crore in the same period the previous year. Similarly, the net NPA for the second quarter of the current financial year stood at Rs 1,229.81 crore, down from Rs 1,262.35 crore year-on-year.
Key Financial Highlights:
The bank's Net Interest Income (NII) displayed strong growth, increasing by 16.72 per cent from Rs. 1,761.83 crore to Rs 2,056.42 crore as of 30 September 2023.
Total deposits in the reporting quarter experienced significant year-on-year growth, rising to Rs 2.23 lakh crore as of 30 September, up from Rs 1.89 lakh crore.
Net advances also exhibited substantial year-on-year growth, reaching Rs 1.93 lakh crore as of 30 September, reflecting an increase of 19.58 per cent.
Additional Insights:
The reporting quarter saw remarkable year-on-year growth in both retail advances and business banking advances, with figures reaching Rs 62,009 crore and Rs 15,997 crore, respectively.
Federal Bank's credit card portfolio experienced remarkable growth, surging by 182 per cent year-on-year. Additionally, personal loans exhibited a 76 per cent year-on-year growth, as noted in the bank's investor presentation.
The bank's gold loan portfolio displayed a significant 17 per cent year-on-year growth, reaching Rs 22,608 crore in the second quarter of the current financial year.
