Federal Bank Q2FY25 Results: Strong Performance Across Verticals
Federal Bank announced robust Q2FY25 results, with record profits and improved asset quality. The bank showed strong growth in deposits, advances, and net interest income.
RI
by RA ALOK DAIYA SEBI Reg. INH000011468
Record-Breaking Financial Performance
1
Highest Ever Net Profit
Federal Bank achieved a record net profit of Rs 1,056.69 crore, growing 10.79% year-on-year.
2
Operating Profit Peak
The bank's operating profit reached an all-time high of Rs 1,565.36 crore.
3
Impressive Returns
Return on Assets (ROA) stood at 1.28%, while Return on Equity (ROE) was 13.65%.
Deposit and Advance Growth
Total Deposits
Deposits grew by 15.56%, showcasing strong customer trust and liquidity management.
Net Advances
Total net advances increased by 19.45%, indicating robust credit demand and risk appetite.
Net Interest Income
NII grew by 15.11% to Rs 2,367.23 crore, reflecting improved interest margins.
Improved Asset Quality
Federal Bank significantly improved its asset quality. Gross Non-Performing Assets (GNPA) reduced to 2.09%. Net Non-Performing Assets (NNPA) decreased to 0.57%.
Total Business Milestone
4,99,418.83
Crore
Federal Bank's total business reached a new milestone.
This reflects the bank's growing market presence and customer base expansion across India.
CEO's Perspective on Q2 Performance
Q2 has been robust for the Bank, driven by strong momentum across diverse operational verticals.
KVS Manian, MD & CEO, highlighted the bank's consecutive achievement of Rs 1,000 crore net profit. He emphasized the bank's commitment to sustaining this momentum.
Deposit Rating Upgrade
AAA Rating
CRISIL upgraded Federal Bank's deposits to AAA, indicating highest safety and reliability.
Strong Franchise
The rating upgrade signifies a sturdy core of the bank's franchise.
Future Outlook
AAA rating may attract more institutional depositors and lower funding costs.
Future Strategy and Outlook
Expanding Digital Offerings
Federal Bank aims to build on its strong Q2 momentum and will focus on sustaining growth across verticals and further improving asset quality. The bank plans to expand its digital banking offerings, including mobile banking and online payments, to cater to a growing customer base.
Investing in Technology
Federal Bank will also invest in new technologies to improve operational efficiency and enhance the customer experience.
Optimistic Future Prospects
Looking ahead, the bank remains optimistic about its future prospects. The strong growth in deposits and advances, coupled with a focus on improving asset quality, positions the bank well to capitalize on new opportunities.
Federal Bank is committed to delivering value to its customers and shareholders while contributing to the growth of the Indian economy.