Federal Bank Soars: Net Profit Jumps 18% to ₹1,009 Crore

24 Jul 2024 , 01:49 PM

On July 24, Federal Bank announced an 18% increase in standalone net profit to ₹1,009 Crore for the quarter ending June 30, 2024. Last year, it reported a standalone net profit of ₹854 Crore.

At 1:45 p.m. on July 24, the lender’s shares were trading 2.2% up at ₹202.5 each.

The bank also announced that its board has approved a fund raise of up to ₹6,000 Crore using various securities.

The Bank stated in an exchange filing “The board approved borrowing/ raising of funds in Indian Currency or any other permitted foreign currency by way of issue of debt instruments including but not limited to Additional Tier I bonds (AT1 bonds), Tier II bonds, Long Term Bonds (Infrastructure & Affordable Housing), Masala Bonds, bonds issued for Environmental Social Governance funding (ESG bonds) such as Green Bonds, Blue Bonds, non-convertible debentures or such other debt securities as may be permitted by RBI from time to time, up to ₹6,000 Crore in domestic market and/or overseas market, on a private placement basis,”

Shyam Srinivasan, the Bank’s Managing Director and CEO, stated: “I am thrilled that we have had a resoundingly excellent start to FY 25 and produced our best ever quarterly earnings. With industry-leading growth in deposits and assets, we are continually gaining market share. Our entire focus on increasing our physical and digital presence is allowing us to establish a broader footprint throughout India. We had numerous firsts this quarter, but the most notable was that our pioneering technology initiatives were recognised by extremely reputable stakeholders.”

The bank’s net interest income increased 19.46% annually from ₹1,919 Crore to ₹2,292 Crore as of June 30, 2024. The bank’s total income increased by 26%, reaching ₹7,246 Crore.

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