Federal Bank, a private sector lender, reported an 11 percent rise in net profit for the September quarter, reaching Rs 1,057 crore. In the corresponding period of the previous year, the bank had recorded a net profit of Rs 954 crore. According to a regulatory filing, the bank’s total income for the quarter increased to Rs 7,541 crore, compared to Rs 6,186 crore in the same quarter of the previous year.
The bank’s interest income for the quarter was reported at Rs 6,577 crore, a rise from Rs 5,455 crore in the equivalent period the year before. Net interest income (NII) experienced a 15 percent increase, amounting to Rs 2,367 crore, up from Rs 2,056 crore in the same quarter of the prior year.
Regarding asset quality, Federal Bank saw improvements with gross non-performing assets (NPAs) reducing to 2.09 percent of gross loans by the end of September 2024, compared to 2.26 percent a year earlier. Similarly, net NPAs decreased to 0.57 percent from 0.64 percent at the conclusion of the second quarter of the previous fiscal year. The bank’s net worth grew from Rs 26,032 crore to Rs 31,108 crore as of September 2024. However, the Capital Adequacy Ratio (CRAR) declined to 15.20 percent from 15.50 percent at the end of the same quarter in the prior fiscal year.