Federal Bank of August 2 reported a 14.7 percent fall in its net profit to Rs 861.75 crore in the first quarter of the current financial year. On Sequential basis, net profit fell 16.31 percent.
The bank registered operating profit of Rs 1556.29 crore for the quarter ended June 30, 2025.
Net Interest Income of the banks in the reporting quarter rose 1.96 percent year-on-year to Rs. 2336.83 crore, from Rs 2291.98 crore in the year ago period. Total income of the bank for the quarter grew by 7.64 percent on-year to reach Rs 7799.61 crore.
Earnings per share (EPS) annualized was Rs 14.07 for the quarter. Net Interest Margin is at 2.94 percent.
In April-June quarter, banks reported a 8.03 percent on-year rise in total deposit to 287436.31 crore, from Rs 266064.69 crore in a year ago period.
On the asset side, net advances of the lender increased from Rs. 220806.64 crore as on June 30, 2024 to Rs.241204.34 crore on June 30, 2025, a growth of over 9 percent.
Retail Advances grew by 15.64 percent to Rs. 81046.54 crore. Business Banking advances grew by 6.29 percent to Rs 19193.95 crore. Commercial Banking advances grew by 30.28 percent to Rs 25028 crore. Corporate Advances registered a growth of 4.47 percent to Rs 83680.44 crore. The CV/ CE
advances grew by 30.31 percent to Rs 4858 crore, as per press release of the bank.
Gross non-performing asset (NPA) of the bank as at the end of Q1FY26 stood at Rs 4669.66 Cr, which as a percentage to gross advances stood at 1.91 percent. The Net NPA and Net NPA as a percentage to net advances, as on June 30, 2025 stood at Rs 1157.64 crore and 0.48 percent, respectively.
Provision Coverage Ratio excluding Technical Write Off was 74.41 percent.
"We delivered a strong operating performance, with improving productivity. Fee income hit a record high, and CASA ratios continued to improve steadily. On asset quality, while credit costs were elevated this quarter, they were largely driven by slippages in the Agri and MFI portfolios. Based on current trends, we expect these slippages to moderate and stabilise going forward, leading to a normalisation in credit costs," KVS Manian, Managing Director & CEO of the bank was quoted saying in a release.
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