Federal Bank Q4 Profit Jumps 14% to ₹1,030 Crore

30 Apr 2025 , 07:11 PM

Federal Bank reported a robust set of figures for the quarter ended March 2025 with net profit rising 13.7% to ₹1,030.2 crore from ₹906.3 crore in the corresponding quarter of the previous year.

The bank’s core operating income, or net interest revenue (NII), rose 8.3% year on year at ₹2,377.4 crore, reflecting sustained business growth. Net interest margin (NIM) also increased to 3.12% in the quarter, showing prudent attempts at balance on both the asset and liability side.

Asset quality too picked up in the quarter. Gross non-performing assets (GNPA) reduced to ₹4,375.5 crore from ₹4,553.3 crore for the last quarter. Net NPA reduced to ₹1,040.4 crore, from ₹1,131.2 crore last quarter, due to higher loan recoveries and better risk management.

In absolute value terms, GNPA declined to 1.84% from 1.95%, and net NPA declined to 0.44% from 0.49% sequentially. Provision cover for the bank was healthy 75.37%, excluding technical write-offs.

Total business was ₹5.18 lakh crore as of 31st March, 2025, compared with last year’s growth of 12.24%. Net growth at ₹2.35 lakh crore was better than ₹2.09 lakh crore last year on account of broad-based growth across segments.

Retail loans increased 14.5% to ₹77,212 crore, with strong demand from retail borrowers. Business banking loans increased 11.44% to ₹19,064 crore and commercial banking loans were the highest at 26.76% to ₹27,199 crore.

Corporate loan book increased 8.39% to ₹79,774 crore with diversified exposure across industries. Commercial vehicle and construction equipment loan book saw sharp growth of 34.93% to ₹4,644 crore.

Gold loans, farm gold loans also witnessed healthy growth of 20.93% to ₹30,505 crore. On the asset side, deposits increased by 12.32% year-on-year at ₹2.84 lakh crore, indicating unabated customer confidence.

The bank’s net worth increased to ₹33,122 crore, showing a 13.86% year-on-year increase. Capital adequacy ratio (CAR) under Basel III norms was sound at 16.40%, indicating financial stability. The Board of Directors has suggested a dividend of ₹1.20 per equity share (60% of face value of ₹2), subject to approval in the ensuing AGM.