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Federal Bank has reported 5% declined in net profit at Rs 955.44 crore for the quarter ended December 2024 (Q3FY2025) on account of accelerated provisions. The bank has posted healthy 15% growth in net interest income (NII), while the core fee income of the bank also improved 22% in Q3FY2025. The Net Interest Margin (NIM) of the bank nearly stable at 3.11% in Q3FY2025 compared to 3.19% in the corresponding quarter of previous year.
On business front, the bank as has posted 12% growth in business with 13% surge in loan book. The asset quality of the bank has improved in Q3FY2025. Bank has exhibited rise in the credit to deposit ratio to 87.8% at end December 2024 from 86.4% at end December 2023. CASA ratio of the bank has was n early stable at 30.2% at end December 2024 from 30.6% at end December 2023.
Asset quality improves: The bank has improved asset quality in Q3FY2025.
The fresh slippages of loans stood at Rs 498 crore in Q3FY2025 compared with 434 crore in previous quarter and Rs 496 crore in the corresponding quarter last year.
The recoveries and upgradations of NPAs stood at Rs 335 crore, while the write-off of loans was at Rs 494 crore in Q3FY2025.
The standard restructured loan book of the bank stood at Rs 1560 crore end December 2024.
Provision coverage ratio improved to 74.21% at end December 2024 compared to 71.82% a quarter ago and 71.08% a year ago.
The capital adequacy ratio of the bank stood at 15.2% with Tier I ratio at 13.8% at end December 2024.
The risk weighted assets of the bank has increased 12% YoY to Rs 202605 crore end December 2024.
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Asset Quality
Indicators: Federal Bank
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|
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Dec-24
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Sep-24
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Jun-24
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Mar-24
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Dec-23
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Variation
|
|
QoQ
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YTD
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YoY
|
|
Gross NPA (Rs Crore)
|
4553.31
|
4884.49
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4738.35
|
4528.87
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4628.79
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-7
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1
|
-2
|
|
Net NPA (Rs Crore)
|
1131.17
|
1322.29
|
1330.44
|
1255.33
|
1284.37
|
-14
|
-10
|
-12
|
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% Gross NPA
|
1.95
|
2.09
|
2.11
|
2.13
|
2.29
|
-14
|
-18
|
-34
|
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% Net NPA
|
0.49
|
0.57
|
0.60
|
0.60
|
0.64
|
-8
|
-11
|
-15
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% PCR
|
74.21
|
71.82
|
70.79
|
71.08
|
71.08
|
239
|
313
|
313
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% CRAR - Basel III
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15.16
|
15.20
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15.57
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16.13
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15.02
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-4
|
-97
|
14
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% CRAR - Tier I -
Basel III
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13.78
|
13.82
|
14.17
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14.61
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13.48
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-4
|
-83
|
30
|
|
Variation in basis points
for figures given in percentages and in % for figures in Rs crore
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Business Highlights:
Business growth moderates but remains healthy: The business of the bank has increased 12% YoY to Rs 500124 crore end December 2024, driven by 13% surge in advances to Rs 233749 crore. Deposits rose 11% to Rs 266375 crore at end December 2024.
CASA deposits ratio steady: The CASA deposits of the bank increased 9% YoY to Rs 80345 crore at end December 2024. The current account deposits increased 6% to Rs 17380 crore, while saving account deposits moved up 10% to Rs 63546 crore end December 2024. The CASA ratio was nearly stable at 30.2% at end December 2024 compared to 30.6% at end December 2023. The term deposits have increased 12% to Rs 186030 crore end December 2024.
Strong loan growth: Advances growth was driven by retail loans rising 19% YoY to Rs 103557 crore at end December 2024, while credit to agriculture increased 11% to Rs 8138 crore and MSME 17% to Rs 23158 crore at end December 2024. The corporate credit has moved up 11% to Rs 103345 crore end December 2024.
Investment book of the bank increased 16% YoY to Rs 66441 crore at end December 2024.
Margins remain stable: The bank has showed 19 bps YoY increase in cost of deposits to 5.92%, while yield on advances also rose bps YoY to 9.39% in Q3FY2025. NIM has eased 8 bps YoY and 1 bps QoQ to 3.11% in Q3FY2025.
Branch expansion: The bank has added 17 branches and 2 ATMs in Q3FY2025, taking overall tally to 1550 branches and 2054 ATM`s end December 2024.
Book value of the bank stood at Rs 131.7 per share at end December 2024, while the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 126.5 per share at end December 2024.
Quarterly Performance
NII rises on stable NIMs: Bank has recorded 19% increase in the interest earned at Rs 6808.73 crore, while interest expenses increased 21% to Rs 4377.39 crore in Q3FY2025. NII improved 15% to Rs 2431.34 crore in the quarter ended December 2024.
Healthy growth in the core fee income: Bank has posted strong 22% growth in core fee income to Rs 712 crore, while the 5% to Rs 44 crore. However, the treasury income declined 33% to Rs 160 crore, leading to 6% growth in the overall non-interest income to Rs 916.17 crore in the quarter ended December 2024.
Expenses ratio rises: The operating expenses of the bank increased 15% to Rs 1778.05 crore, as other expenses moved up 16% to Rs 994.89 crore, while employee expenses increased 13% to Rs 783.16 crore in Q3FY2025. Cost to income ratio rose to 53.1% in Q3FY2025 compared with 51.9% in Q3FY2024. Operating Profit increased 9% to Rs 1569.46 crore.
Provisions and contingencies jumps: The bank has showed 220% surge in provisions to Rs 292.33 crore. The loan loss provisions jumped 127% to Rs 343.00 crore. However, the bank has written back investment provisions of Rs 1 crore and standard asset provisions of Rs 56 crore, while other provisions fell 90% to Rs 6 crore in Q3FY2025.
Effective tax rate was steady at 25.2% in Q3FY2025 from 25.2% in Q3FY2024. Net Profit declined 5% YoY to Rs 955.44 crore during quarter ended December 2024.
Financial Performance 9MFY2025:
Bank has posted 7% increase in net profit to Rs 3021.66 crore in the nine months ended December 2024 (9MFY2025). The net interest income increased 16% to Rs 7090.55 crore, while non-interest income moved up 20% to Rs 2795.30 crore, pushing up net total income by 17% to Rs 9885.85 crore in 9MFY2025. The operating expenses increased 20% to Rs 5250.12 crore, while provision and contingencies galloped 105% to Rs 594.95 crore, allowing profit before tax to increase 7% to Rs 4040.78 crore in 9MFY2025. The cost-to-income ratio rose to 53.1% in 9MFY2025 compared to 51.8% in 9MFY2024. An effective tax rate declined to 25.2% in 9MFY2025 compared to 25.4% in 9MFY2024. The net profit has increased 7% to Rs 3021.66 crore in 9MFY2025.
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Federal Bank: Results
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Particulars
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2412
(3)
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2312
(3)
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Var
%
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2412
(9)
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2312
(9)
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Var
%
|
2403
(12)
|
2303
(12)
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Var
%
|
|
Interest Earned
|
6808.73
|
5730.10
|
19
|
19716.89
|
16209.91
|
22
|
22188.26
|
16803.63
|
32
|
|
Interest Expended
|
4377.39
|
3606.74
|
21
|
12626.34
|
10111.54
|
25
|
13894.78
|
9571.47
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45
|
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Net Interest Income
|
2431.34
|
2123.36
|
15
|
7090.55
|
6098.37
|
16
|
8293.48
|
7232.16
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15
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Other Income
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916.17
|
862.56
|
6
|
2795.30
|
2325.39
|
20
|
3079.27
|
2330.00
|
32
|
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Net Total Income
|
3347.51
|
2985.92
|
12
|
9885.85
|
8423.76
|
17
|
11372.75
|
9562.16
|
19
|
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Operating Expenses
|
1778.05
|
1548.59
|
15
|
5250.12
|
4359.63
|
20
|
6198.27
|
4767.77
|
30
|
|
Operating Profits
|
1569.46
|
1437.33
|
9
|
4635.73
|
4064.13
|
14
|
5174.48
|
4794.39
|
8
|
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Provisions & Contingencies
|
292.33
|
91.22
|
220
|
594.95
|
290.70
|
105
|
196.10
|
749.89
|
-74
|
|
Profit Before Tax
|
1277.13
|
1346.11
|
-5
|
4040.78
|
3773.43
|
7
|
4978.38
|
4044.50
|
23
|
|
Provision for tax
|
321.69
|
339.37
|
-5
|
1019.12
|
959.13
|
6
|
1257.78
|
1033.91
|
22
|
|
PAT
|
955.44
|
1006.74
|
-5
|
3021.66
|
2814.30
|
7
|
3720.60
|
3010.59
|
24
|
|
EPS*(Rs)
|
15.6
|
16.4
|
|
16.4
|
15.3
|
|
15.2
|
12.3
|
|
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Adj BV (Rs)
|
126.5
|
109.5
|
|
126.5
|
109.5
|
|
113.4
|
94.6
|
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* Annualized on current equity of
Rs 490.99 crore. Face Value: Rs 2, Figures in Rs crore
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Source: Capitaline Corporate
Database
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