Federal Bank Limited hits record with Rs 1,007cr quarterly net profit

Federal Bank Limited, an Indian private sector bank headquartered in Aluva, Kochi, Kerala, has announced a milestone achievement for the quarter ended December 31, 2023. The bank has registered its highest ever quarterly net profit at ₹1007 Crores, marking a significant 25.28% growth year-over-year.

Unprecedented Financial Growth

This quarter’s financial highlights are impressive, with the bank’s total business reaching ₹438,776.39 Crores, an 18.72% increase from the previous year. The net profit soared to ₹1006.74 Crores, up by 25.28%. Additionally, the operating profit was reported at ₹1437.33 Crores.

Stellar Performance Indicators

The bank’s Return on Assets (ROA) stood at 1.39%, and Return on Equity (ROE) at 14.80%. The Gross Non-Performing Assets (GNPA) and Net Non-Performing Assets (NNPA) were recorded at 2.29% and 0.64% respectively, indicating robust asset quality. The bank’s total deposits grew by 18.96%, while net advances increased by 18.44%.

Record Net Interest Income

Federal Bank also reported its highest ever Net Interest Income at ₹2123.36 Crores, growing by 8.53%. The total income witnessed a significant surge of 32.72%, reaching ₹6592.66 Crores. The Earnings Per Share (EPS) annualized is ₹16.54, reflecting the bank’s strong financial health.

Growth Across Segments

The bank showed exceptional growth across various segments. Retail Advances grew by 20.39%, Business Banking by 17.80%, and Commercial Banking by 25.99%. Corporate Advances and CV/CE advances also saw notable increases.

Expanding Footprint and Brand Salience

The Indian private sector lender’s expanding distribution footprint, both physical and digital, is backed by initiatives to increase brand visibility. The bank now operates 1418 branches and 1960 ATMs/Recyclers.

Federal Bank Limited’s record-breaking performance in the quarter ending December 2023 highlights its resilience and strategic growth, setting a new benchmark in the Indian banking sector.