Federal Bank Q2 profit rises 11% to Rs 1,057 crore, asset quality improves

Federal Bank saw improvement with gross non-performing assets (NPAs) declining to 2.09 percent of gross loans by the end of September 2024 from 2.26 percent a year ago.

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26 Aug, 2025 12:21

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Private sector lender Federal Bank on October 28 posted an 11 percent increase in net profit to Rs 1,057 crore in the September quarter, from Rs 954 crore recorded in the year-ago period.

Total income increased to Rs 7,541 crore during the quarter under review against Rs 6,186 crore in the same quarter last year, Federal Bank said in a regulatory filing.

The bank reported an interest income of Rs 6,577 crore during the quarter, higher than Rs 5,455 crore in the same period a year earlier.

Net interest income (NII) grew 15 percent to Rs 2,367 crore as compared to Rs 2,056 crore in the same quarter a year ago.

As regards to asset quality, the bank witnessed improvement with gross non-performing assets (NPAs) declining to 2.09 percent of gross loans by the end of September 2024 from 2.26 percent a year ago.

Similarly, net NPAs, or bad loans, moderated to 0.57 percent from 0.64 percent at the end of the second quarter of the previous fiscal year.

"Q2 has been robust for the Bank, driven by strong momentum across diverse operational verticals. This is clearly reflected in our consecutive surpassing of the 1000 Crore net profit milestone for two quarters in a row. Our deposits, now upgraded to AAA by CRISIL, signify a sturdy core of the franchise. Business momentum across verticals has been strong and inclusive, and asset quality improvements have been notable. We are committed to sustaining and building on this strong momentum to achieve continued success for the Bank,” said KVS Manian, MD & CEO.

Net worth of the bank increased from Rs 26,032 crore to Rs 31,108 crore as on September 2024.

However, Capital Adequacy Ratio (CRAR) of the bank declined to 15.20 percent as compared to 15.50 percent at the end of the same quarter in the previous fiscal year.

(With PTI inputs)