Federal Bank's Net Up 35.5% To Rs 954 Cr

Private sector lender Federal Bank on Monday reported a 35.54 per cent jump in standalone net profit for the second quarter of this fiscal at Rs 953.82 crore, helped by rise in net interest income.

The company said that this is Federal Bank's highest-ever net profit in Q2 FY24. Capital Adequacy Ratio reached 15.50 per cent in Q2 FY24 from 14.28 per cent in Q1 FY24 and 13.84 per cent in Q2 FY23, led by the increase in deposits due to the withdrawal of Rs 2,000 notes.

Gross NPA was the lowest in the last thirty-four quarters and stood at 2.26 per cent in Q2 FY24, down 12 bps down on QoQ basis and 2 bps down at YoY on account of an improvement in the asset quality. Credit cost in Q2 FY24 stood at 0.13 per cent, 28 bps down on QoQ basis and 40 bps down on YoY basis due to the decline in provisions. Provisions declined to Rs 44 crore in Q2 FY24 from Rs 156 crore in Q1 FY24 and Rs 268 crore in Q2 FY23. Net Interest Income stood at Rs 2,056 crore in Q2 FY24, showing a 7.2 per cent QoQ and 16.7 per cent up at YoY growth, though the market estimates were of Rs. 2,000 crore.

"The bank’s focus on para banking (insurance, investments, wealth management) led to strong growth sequentially and annually, and is likely to continue," the report states.

Gross Deposits stood at Rs 2,32,868 crore in Q2FY24, 4.7 per cent up at QoQ basis and up 23.1 per cent up at YoY basis.

“There was no impact on NIMs due to the I-CRR, as the impact was offset by increased capital (via QIP) raised in Q2FY24," the report highlighted.