Federal Bank logs highest-ever profit of ₹1,010 cr in Q1; stock hits 52-week high

Federal Bank on Wednesday announced its June quarter results, reporting highest-ever standalone net profit of ₹1,009.53 crore, up 18.25% from ₹853.74 crore in the same period last year. The bank recorded its operating profit, with a 15.25% increase, reaching ₹1,500.91 crore for the quarter ending June 30, 2024.

Following the quarterly results announcement, shares of Federal Bank jumped 2.9% to hit a 52-week high of ₹203.90 apiece on the BSE yesterday, before closing at ₹201.45 apiece. For the quarter ending June 2024, the bank's total business reached ₹4,86,871.33 crore, reflecting a 19.92% growth as of June 30, 2024.

Total deposits rose from ₹2,22,495.50 crore on June 30, 2023, to ₹2,66,064.69 crore by June 30, 2024. Net interest income saw a 19.46% increase, climbing from ₹1,918.59 crore to ₹2,291.98 crore. The bank's total income grew by 25.87%, reaching ₹7,246.06 crore. The annualised earnings per share (EPS) stood at ₹16.60.The bank's net interest income saw a 19.46% annual growth, rising from ₹1,919 crore to ₹2,292 crore.

The total income of the bank increased by 26 percent, reaching ₹7,246 crore.At the end of Q1 FY25, the bank's Gross NPA stood at ₹4,738.35 crore, representing 2.11% of Gross Advances. As of June 30, 2024, the Net NPA was ₹1,330.44 crore, or 0.60% of Net Advances. The Provision Coverage Ratio, excluding Technical Write-Offs, was 70.79%, the bank states.

The bank's Return on Assets (ROA) for the quarter was 1.27%, while its Return on Equity (ROE) was 13.64%.

Shyam Srinivasan, managing director and CEO of Federal Bank said, “I am encouraged that we have had a resoundingly strong start to FY 25 and delivered our highest ever quarterly profits. With industry leading growth in both deposits and assets we are gaining share consistently. Our overall focus of dialling up our physical and digital presence is helping us reach a larger footprint across India. It’s been a quarter where we recorded many firsts, however most noteworthy was the fact that our pioneering technology initiatives have been awarded by very reputed stakeholders. We believe the good start; stable credit quality and sustainable retail deposit traction should help us move further towards our aspiration of being the Most Admired Bank.”

The bank's board has also approved fundraising of up to ₹6,000 crore through various securities.