Federal Bank, a private sector lender based in New Delhi, has announced a significant increase in its standalone net profit for the second quarter of this fiscal year. The bank reported a 35.54% jump in net profit, reaching Rs 953.82 crore, compared to Rs 703.71 crore in the same period last year. This growth can be attributed to a rise in net interest income.
According to a regulatory filing, Federal Bank’s total income during the July-September quarter of 2023-24 rose to Rs 6,185.70 crore, up from Rs 4,630.30 crore in the previous year’s corresponding period.
The bank’s net interest income experienced a 17% growth, reaching Rs 2,056.42 crore, compared to Rs 1,761.83 crore in the same period last year.
Federal Bank also reported an improvement in its asset quality, with gross non-performing assets (NPAs) falling to 2.26% of the gross advances as of the end of September 2023, compared to 2.46% in the previous year’s second quarter. The net NPAs decreased to 0.64% in the quarter under review, down from 0.78% in the same quarter a year ago.
Provisions for bad loans and contingencies in the September 2023 quarter decreased to Rs 44 crore, significantly lower than the Rs 268 crore set aside in the year-ago period.
Additionally, the net worth of Federal Bank increased from Rs 19,617.82 crore to Rs 26,032.07 crore as of September 30, 2023.
The Capital Adequacy Ratio (CRAR) of the bank, calculated according to Basel III guidelines, stood at 15.50% at the end of the quarter.
Federal Bank’s strong financial performance positions it as a leading player in the industry, affirming its commitment to providing value to its stakeholders while maintaining a robust asset quality.