Federal Bank Q2 PAT rises 5% to Rs 226 cr, NIMs improve

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26 Aug, 2025 12:21

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Moneycontrol Bureau

Private sector lender Federal Bank beat street estimates as its second quarter (July-September) profit after tax rose 5 percent year-on-year (113.7 percent sequentially) to Rs 226 crore on improved margins. Net interest income increased to 8.4 percent Y-o-Y to Rs 548.4 crore.

According to a CNBC-TV18 poll, analysts on an average had expected the bank to report net profit of Rs 162 crore and net interest income of Rs 528 crore for the quarter.

Asset quality and net interest margin of the bank improved in the quarter gone by while provisions fell 5 percent to Rs 128 crore in second quarter from Rs 134.5 crore in a year ago period.

Net interest margin climbed 17 basis points Y-o-Y to 3.30 percent.

Gross non-performing assets (GNPAs) declined 1.1 percent sequentially (up 2 percent year-on-year) to Rs 1,466 crore while net NPAs jumped 10 percent Q-o-Q (up 68 percent Y-o-Y) to Rs 411.4 crore in second quarter.

Gross NPAs slipped 12 bps Q-o-Q (down 44 bps Y-o-Y) to 3.39 percent while net NPAs increased 7 bps Q-o-Q (up 23 bps Y-o-Y) to 0.98 percent in the quarter gone by.

Other income increased 2.8 percent on yearly basis to Rs 143.4 crore in September quarter, but core other income (excluding trading gains and recovery from written off accounts) jumped 10.2 percent Y-o-Y to Rs 128.4 crore.

Deposits grew 14.69 percent while net advances jumped 16.3 percent year-on-year. NRE deposits surged 55.5 percent Y-o-Y.