Federal Bank Q3 profit surges 25% to ₹1,007 cr

The net profit of Federal Bank rose highest ever by 25.28% year-on-year (YoY) to ₹1,006.74 crore for the October-December quarter, compared with ₹803.61 crore in the year-ago period. Net interest income (NII) increased 8.53% YoY to ₹2,123.36 crore in the third quarter as against ₹1,956.53 crore in the corresponding quarter last year.

Post-results announcement, the stock dipped 3.3% to ₹149.70 apiece on BSE today. The operating profit of the bank grew by 12.80% to ₹1,437.33 crore for the quarter that ended December 31, 2023, compared with ₹1,274.21 crore in the year-ago period.

The bank's return on asset and return on equity for the quarter were recorded at 1.39% and 14.80%, respectively.

“Total business of the bank reached Rs. 4,38,776.39 Cr registering a growth of 18.72% as of 1st December 2023. Total deposits increased from Rs. 2,01,408.12 Cr as on 31st December 2022 to Rs.239591.16 Cr as on 31st December 2023,” the bank states in a filing exchange.

The bank's other income experienced a 61.61% leap, reaching ₹863 crore compared to ₹534 crore YoY.

In the specific loan categories, there was a surge of 20.39% in retail advances, reaching ₹65,041 crore. Business banking advances experienced an increase of 17.80%, reaching ₹16,679.75 crore.

On the asset side, the bank’s net advances increased from ₹1,68,173.13 crore as of December 31, 2022, to ₹1,99,185.23 crore on December 31, 2023. Retail advances grew 20.39% to reach ₹65,041.08 crore.

The gross Non-Performing Assets (NPA) of the bank amounted to ₹4,628.79 crore, representing 2.29% of gross advances at the end of Q3 FY23. The net NPA stood at ₹1,284.37 crore and 0.64%, respectively.

Shyam Srinivasan, managing director & CEO of Federal Bank, says with an increase of over 100 branches in the past calendar year and a similar number planned for this year, the bank’s growth trajectory is well poised to sustain this positive momentum.

In a separate development, Federal Bank today said (“the Bank”) confirmed that there was no deviation or variation in the utilisation of proceeds received from preferential allotment during the quarter ended December 31, 2023. “A ‘NIL’ statement of deviation or variation duly reviewed by the Audit Committee of the Bank at its meeting held on January 16, 2024, for the quarter ended December 31, 2023, is enclosed herewith.”