Federal Bank reports 18% jump in net profit on core income growth

economictimes.indiatimes.com:

Federal Bank on Wednesday reported a 18.3% year-on-year jump in net profit for the first quarter at Rs 1010 crore, buoyed by steady business expansion and core income growth.

The bank's operating profit stood at Rs 1,501 crore for the quarter, reflecting a 15.3% rise.

“I am encouraged that we have had a resoundingly strong start to FY25 and delivered our highest ever quarterly profits," managing director Shyam Srinivasan said.

The bank's net interest income rose by 19.5% at Rs 2292 crore while net interest margin for the quarter stood at 3.16% against 3.2% in the year-ago quarter. Its gross advances grew 20% year-on-year to Rs 2.24 lakh crore at the end of June.

Srinivasan, who will retire on September 22, said that NIM will likely be around the current level in the next few quarters and would depend on the deposit mobilisation dynamics.
The Kerala-headquartered lender saw its deposits grow by 19.5% year-on-year to Rs 2.66 lakh crore, almost in sync with the credit expansion, helped by a 9% rise in deposits parked by non-resident Indians.

The bank's asset quality strengthened further with gross non-performing assets ratio falling to 2.11% at the end of June from 2.38% a year back.

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